Case Brief
By order dated March 18, 2025, RBI imposed a monetary penalty of Rs 5.00 lakh on The Karnataka Co-operative Bank Ltd., Muddebihal, Karnataka for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, and specific directions to contribute to the MSE Refinance Fund. RBI said the bank was required to deposit a specified amount in the MSE Refinance Fund administered by SIDBI against its shortfall in PSL achievement for FY 2022-23, but it failed to do so even after a cautionary letter. Following a show-cause notice, reply, and oral hearing, RBI concluded that the charge was sustained and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Muddebihal, Karnataka