Case Brief
RBI imposed a monetary penalty on The Karimnagar Co-operative Urban Bank Ltd., Telangana by order dated March 18, 2025. The action was taken for non-compliance with RBI directions relating to Priority Sector Lending (PSL) targets and classification, and specific directions to make a contribution to the MSE Refinance Fund administered by SIDBI. RBI said the bank had been directed to deposit a specified amount into the fund against its PSL shortfall for FY 2022-23, but it failed to comply even after a cautionary letter and a show-cause notice. After considering the bank's reply and oral submissions at the personal hearing, RBI sustained the charge and imposed a penalty of ₹3.10 lakh under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 3.10 L
- Entity Type
- Co-operative bank
- Location
- Karimnagar, Telangana