Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Pragathi Cooperative Bank Ltd., Bengaluru, Karnataka, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions/guidelines on housing, real estate and commercial real estate sector exposure, risk categorization/risk profiling of customers, and updation of old accounts. The bank had received a show-cause notice, sought a personal hearing, and submitted a written reply before RBI concluded that the violations were substantiated and warranted a penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- Co-operative bank
- Location
- Bengaluru, Karnataka