Case Brief
The Reserve Bank of India imposed a monetary penalty on Pragati Sahkari Bank Ltd., Vadodara under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated Sections 20 and 20A of the Act by making director-related advances, granting unsecured loans beyond the stipulated ceiling, and failing to report frauds to RBI. After a show-cause notice and the bank’s written reply, RBI concluded that the violations were substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Co-operative bank
- Location
- Vadodara, Gujarat
- Order Date