Reserve Bank of India imposes monetary penalty on Indore Paraspar Sahakari Bank Limited, Indore

Case Brief

RBI imposed a monetary penalty of ₹1.00 lakh on Indore Paraspar Sahakari Bank Limited, Indore, by order dated March 16, 2021. The penalty was levied because the bank contravened RBI's directions on 'Exposure Norms and Statutory/Other Restrictions-UCBs'. RBI said the violation was established from the inspection report based on the bank's financial position as on March 31, 2019, and after issuing a show-cause notice and considering the bank's written and oral responses. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949.