Category: Press Releases

The Governor, Reserve Bank of India (RBI) held meetings with the MD & CEOs of Public Sector Banks on May 19, 2021 through video conference. The meeting was attended by Deputy Governors Shri M. K. Jain, Shri M. Rajeswar Rao, Dr. Michael D. Patra and Shri T. Rabi Sankar.

In his opening remarks, the Governor acknowledged the important role being played by PSBs in extending various banking facilities including credit facilities to individuals and businesses while tackling the challenges brought on by the pandemic. He impressed upon the banks to quickly implement the measures announced by RBI recently in the right earnest. He also urged the banks to continue focussing on steps to enhance the resilience of their balance sheets.

Among other matters, the following issues were discussed in the meeting.

1. Current state of the financial sector;

2. Credit flows to different sectors including to small borrowers, MSMEs, etc.

3. Progress in the implementation of Covid Resolution Framework 1.0;

4. Monetary policy transmission; and

5. Implementation of Covid-related policy measures taken by RBI.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/232

Ajit Prasad
Director   

Press Release: 2021-2022/231

Ajit Prasad
Director   

Press Release: 2021-2022/230

The Reserve Bank of India (RBl) has imposed, by an order dated May 17, 2021, a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on Priyadarshini Mahila Nagari Sahakari Bank Limited, Beed, Maharashtra (the bank) for non-adherence/ violation of specific directions issued to the bank by the RBI under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

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 inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, non-adherence/ violation of specific directions issued to the bank by the RBI under Supervisory Action Framework (SAF). Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

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

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/227