Case Brief
By an order dated March 18, 2025, RBI imposed a monetary penalty of Rs 1.20 lakh on Sreenivasa Padmavathi Co-operative Urban Bank Ltd., Telangana. The action was taken for non-compliance with RBI directions on Priority Sector Lending (PSL) targets and classification, specifically the bank's failure to deposit the prescribed amount in the MSE Refinance Fund maintained with SIDBI against the shortfall in achievement of the PSL target for FY 2022-23. RBI issued a show-cause notice, considered the bank's written reply and oral submissions, and concluded that the charge was sustained. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.20 L
- Entity Type
- Co-operative bank
- Location
- Telangana