Recorded RBI impact
Fine: Rs 1.10 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2024
Case Brief
By an order dated December 12, 2024, RBI imposed a monetary penalty on Raj Rajeshwari Mahila Nagrik Sahakari Bank Maryadit, Shajapur (MP) for failing to comply with RBI’s directions on Priority Sector Lending (PSL) targets and classification, including a specific direction to deposit the shortfall amount into the MSE Refinance Fund administered by SIDBI for FY 2022-23. RBI noted that the bank did not deposit the specified amount even after receiving a cautionary letter and a subsequent show-cause notice. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Why RBI Acted
RBI imposed a penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949. The bank had been specifically directed to deposit a certain amount in the MSE Refinance Fund administered by SIDBI to make up the shortfall in achievement of the Priority Sector Lending target for FY 2022-23, but it did not deposit the amount within the prescribed time even after a cautionary letter and show-cause notice.
Operating Impact
The bank must pay the monetary penalty; the release does not impose a fresh operational restriction on depositors or borrowers. RBI also stated that the penalty is without prejudice to any other action it may initiate for the same non-compliance.
Regulatory Basis
- Section 47A(1)(c)
- Sections 46(4)(i)
- Section 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.10 L
- Order Date
- 12 Dec 2024
- Effective From
- 12 Dec 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank