RBI imposes monetary penalty on Guna Nagarik Sahakari Bank Maryadit, Guna, Madhya Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Guna Nagarik Sahakari Bank Maryadit, Guna, Madhya Pradesh. The penalty was levied for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, specifically the bank's failure to deposit the required amount into the MSE Refinance Fund administered by SIDBI against its shortfall in PSL achievement for FY 2022-23. RBI noted that a cautionary letter had been issued, but the bank still did not deposit the specified amount within the prescribed time. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.