SC: Suit Alleging Coercion or Undue Influence Cannot be Rejected under Order VII Rule 11 CPC  ||  Cal HC: Once ED Attachment is Confirmed, Challenge Becomes Academic; PMLA Remedy Must be Pursued  ||  MP HC: Pen-Drive Evidence Cannot be Introduced At a Late Trial Stage Without Proof or Relevance  ||  Calcutta HC: Employee Can't be Stopped From Joining Rival Post-Resignation; Trade Secrets Protected  ||  Calcutta HC: Banks Must Provide Forensic Audit Report Before Calling an Account Fraudulent  ||  Del HC: Woman Cannot Demand Re-Entry to Abandoned Matrimonial Home if Alternate Accommodation Exists  ||  Calcutta HC: Land Acquisition For Industrial Park is Public Purpose; Leasing to Industry is Valid  ||  Patna HC: PwD Recruitment Must Comply With RPwD Act; Executive Resolutions Cannot Override the Law  ||  Madras HC: Individuals Facing Criminal Trial Must Get Court Permission Even to Renew Passports  ||  Calcutta HC: Demolition Orders Cannot be Challenged under Article 226 if a Statutory Appeal Exists    

RBI imposes monetary penalty on The Prathamik Shikshak Sahakari Bank Limited, Satara, Maharashtra- (Reserve Bank of India) (07 Dec 2023)

MANU/RPRL/0754/2023

Banking

The Reserve Bank of India (RBI) has, by an order dated November 21, 2023 imposed a monetary penalty of ₹1.00 lakh (Rupees One lakh only) on The Prathamik Shikshak Sahakari Bank Limited, Satara, Maharashtra (the bank) for non-compliance with the directions issued by RBI on 'Management of Advances-UCBs'. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022 and examination of the Risk Assessment Report and all correspondence related thereto revealed, inter alia, that the bank had sanctioned gold loans beyond prescribed regulatory limit under bullet repayment scheme. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

After considering the bank's reply to the notice and oral submissions made by it during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank.

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved