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Laxmibai Mahila Nagrik Sahakari Bank Maryadit, Gwalior, Madhya Pradesh

Co-operative bankGwalior, Madhya Pradesh

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 4.20 L

Monetary penalty · Fresh imposition

S2

Published by RBI

17 Feb 2025

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 4.20 lakh on Laxmibai Mahila Nagrik Sahakari Bank Maryadit, Gwalior, Madhya Pradesh, by order dated February 13, 2025. RBI found that the bank had sanctioned loans to directors and related parties in violation of its directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested, and also failed to deposit the specified amount into the MSE Refinance Fund maintained with SIDBI against its shortfall in Priority Sector Lending achievement for FY 2022-23, despite a cautionary letter. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, and is without prejudice to any other action RBI may initiate.

Why RBI Acted

Lending normsCapital & exposure normsReporting & disclosure

RBI imposed a monetary penalty after the bank was found, on statutory inspection, to have sanctioned loans to directors and related parties in breach of RBI directions on loans and advances to directors, their relatives, and firms/concerns in which they are interested. RBI also found that the bank failed to deposit the specified amount into the MSE Refinance Fund maintained with SIDBI against its shortfall in PSL achievement for FY 2022-23, even after a cautionary letter and within the prescribed time. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

Operating Impact

The bank must bear the financial penalty and remain exposed to any further supervisory or enforcement action RBI may choose to initiate. The action does not itself impose an operating restriction, but it reinforces compliance obligations around director-related lending and PSL-related fund contribution requirements.

Regulatory Basis

  • Section 47A(1)(c)
  • Sections 46(4)(i)
  • Section 56 of the Banking Regulation Act, 1949

Action Facts

Primary Impact
Fine: Rs 4.20 L
Order Date
13 Feb 2025
Effective From
13 Feb 2025
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank