AP HP Criticized Authorities and Ordered Removal of an Ex-Serviceman’s Land From the Prohibited List  ||  Kerala High Court Upheld the Conviction of a Madrasa Teacher in a Child Sexual Assault Case  ||  Gauhati High Court: Pending Criminal Case Cannot Indefinitely Delay an MBBS Pass Certificate  ||  SC Took Suo Motu Action and Directed Odisha to Aid a Visually Impaired Man and His Mother  ||  Whether a Life-Threatening Rescue by Cop Can be Treated as Routine Duty, Madhya Pradesh HC Clarifies  ||  Madhya Pradesh HC: Officer Cannot Oversee Department Conducting Disciplinary Proceedings Against Him  ||  Madras High Court: POCSO Act Does Not Exempt Romantic Relationships Involving Minors  ||  SC Upholds Haryana Rule Delaying Aid to Kin Accused of Murdering Government Employees  ||  Supreme Court: Lokayukta Special Police is Not Exempt From RTI as an Intelligence Body  ||  Supreme Court: Curable Irregularity in Appointments Cannot Nullify Entire Recruitment Process    

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