Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Shri Vaibhav Lakshmi Mahila Nagrik Sahakari Bank Maryadit, Jhabua, Madhya Pradesh, by order dated December 12, 2024. The penalty was for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, specifically the direction to deposit an amount in the MSE Refinance Fund administered by SIDBI against the bank's shortfall in PSL achievement for FY 2022-23. RBI noted that the bank did not deposit the specified amount even after a cautionary letter and failed to comply within the prescribed time; after considering the bank's reply, RBI sustained the charge and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- Co-operative bank
- Location
- Jhabua, Madhya Pradesh