The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 2.00 lakh (Rupees Two Lakh only) on Prathamik Shikshak Sahakari Bank Limited Satara, Maharashtra for non-compliance with certain directions issued by RBI on Advances against Term Deposits of Non-members to Salary Earners’ Primary (Urban) Co-operative Banks.
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| RBI Imposes Rs 2 lakh Penalty on Prathamik Shikshak Sahakari Bank |
RBI Imposes ₹2 Lakh Penalty on Prathamik Shikshak Sahakari Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.00 lakh on Prathamik Shikshak Sahakari Bank Limited Satara, Maharashtra for non-compliance with certain directions issued by RBI on Advances against Term Deposits of Non-members to Salary Earners’ Primary (Urban) Co-operative Banks.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
RBI Imposes Penalty on Prathamik Shikshak Sahakari Bank: Background
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The bank, despite being a Salary Earners’ Primary (Urban) Co-operative Bank, had sanctioned loans against fixed deposits to non-members, without fulfilling the Financially Sound and Well Managed (FSWM) criteria.
- The bank, despite being a Salary Earners’ Primary (Urban) Co-operative Bank, had sanctioned gold loans to non-members.
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. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About Prathamik Shikshak Sahakari Bank
With the objective of freeing the Prathamik Shikshak from the clutches of money lenders, on 21st October 1924, on the principle of "Do it yourself, solve it yourself", an organization named "Satara District Local Board Prathamik Shikshak Association Limited" was established at Masur Taluka Karad, Karad at the initiative of late K.B. Babar and 14 promoters. Its main objectives were as follows.
- Providing financial assistance in the form of loans to teachers in times of difficulty.
- Instilling the habit of saving money in teachers.
- As soon as the situation improves, plan and implement it for the benefit of teachers.
On 17th October 1981 the bank adopted a new and unique name as "Prathamik Shikshak Sahakari Bank Ltd., Satara". At present the bank is providing its services in the entire Satara district. The bank has 13 branches and a head office in Satara district Maharashtra.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Prathamik Shikshak Sahakari Bank for upcoming exams
- Chairman: Mrs. Nisha Rajendra Mulik
- Vice Chairman: Suresh Pandharinath Pawar
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