Case Brief
By an order dated November 30, 2023, RBI imposed a monetary penalty of Rs 7.00 lakh on Progressive Mercantile Co-operative Bank Limited, Ahmedabad, Gujarat. The penalty was imposed because the bank failed to comply with RBI directions on placement of deposits with other banks by Primary (Urban) Co-operative Banks, including breaches of prudential inter-bank counterparty exposure and gross exposure limits. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after RBI examined the inspection material and the bank's response to the show-cause notice.
Action Snapshot
- Primary Impact
- Fine: Rs 7.00 L
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat