RBI imposes monetary penalty on Pragati Mahila Nagrik Sahakari Bank Maryadit, Bhilai, Chhattisgarh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Pragati Mahila Nagrik Sahakari Bank Maryadit, Bhilai, Chhattisgarh, by order dated February 27, 2024. RBI said the action was taken for non-compliance with its directions on Exposure Norms and Statutory/Other Restrictions-UCBs and the KYC Directions, 2016, following a statutory inspection with reference to the bank's financial position as on March 31, 2022. The sustained charges were breach of the prudential inter-bank (gross) exposure limit and failure to conduct periodic review of customer risk categorization every six months. RBI noted that the penalty is based on supervisory findings and does not pronounce upon the validity of any transaction or agreement entered into by the bank.