Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.10 lakh on Shree Balaji Urban Co-operative Bank Ltd., Satna, Madhya Pradesh, by order dated February 13, 2025. The penalty was levied for non-compliance with RBI directions on Priority Sector Lending (PSL) targets/classification and specific instructions to contribute to 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 prescribed amount even after a cautionary letter and, following a show-cause notice, reply, oral submissions, and additional submissions, concluded that the charge was sustained under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.10 L
- Entity Type
- Co-operative bank
- Location
- Satna, Madhya Pradesh