Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹4.50 lakh on Indore Paraspar Sahakari Bank Maryadit, Indore (MP) by order dated December 12, 2024. The penalty was for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, including a specific direction to deposit an amount into the MSE Refinance Fund administered by SIDBI against the shortfall in PSL achievement for FY 2022-23. RBI stated that the bank did not deposit the specified amount within the prescribed time even after a cautionary letter was issued, and the penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 4.50 L
- Entity Type
- Co-operative bank
- Location
- Indore, Madhya Pradesh