RBI imposes monetary penalty on Pune People’s Co-operative Bank Ltd., Pune, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹25.00 lakh on Pune People’s Co-operative Bank Ltd., Pune, Maharashtra by order dated December 30, 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 into the MSE Refinance Fund administered by SIDBI against the bank’s shortfall in PSL achievement for FY 2022-23. RBI noted that the bank failed to deposit the specified amount even after a cautionary letter and within the prescribed time. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI sustained the charge and imposed the penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.