Case Brief
By an order dated December 12, 2024, RBI imposed a monetary penalty on Vaishya Sahakari Bank Ltd., Mumbai, Maharashtra for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, including specific directions to contribute to the MSE Refinance Fund administered by SIDBI for a PSL shortfall in FY 2022-23. RBI noted that the bank failed to deposit the prescribed amount within the stipulated time and continued to remain non-compliant even after receiving a cautionary letter. After considering the bank's reply and oral submissions in a personal hearing, RBI concluded that the charge was sustained and that a monetary penalty was warranted under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.96 L
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra