Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
18 May 2021
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Priyadarshini Mahila Nagari Sahakari Bank Limited, Beed, Maharashtra. RBI said the bank had not adhered to specific directions issued under the Supervisory Action Framework (SAF); the violation was identified in the bank's inspection report as of March 31, 2019. After issuing a show-cause notice, considering the bank's replies and oral submissions, RBI concluded that the non-compliance was substantiated and warranted the penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a monetary penalty after the bank failed to adhere to specific directions issued under the Supervisory Action Framework (SAF). The inspection report for the bank's financial position as on March 31, 2019, revealed non-compliance with RBI directions; after a show-cause notice, replies, and oral submissions, RBI concluded the charge was substantiated and imposed penalty under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.
Operating Impact
The bank must absorb the ₹1 lakh penalty, but the release does not describe any new operational restriction, cancellation, or suspension. The forward-looking impact is mainly supervisory and financial, with continued expectation that the bank comply with RBI directions.
Regulatory Basis
- Section 47 A (1) (c)
- Section 46 (4) (i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 17 May 2021
- Effective From
- 17 May 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank