RBI imposes monetary penalty on Andhra Pragathi Grameena Bank, Andhra Pradesh

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Andhra Pragathi Grameena Bank, Andhra Pradesh, by order dated October 10, 2024. The penalty followed supervisory findings from a NABARD inspection for the bank’s financial position as on March 31, 2023, which showed non-compliance with RBI directions on prudential norms, provisioning, asset classification and exposure limits, read with IRAC norms. RBI specifically found that certain loan accounts were not classified as non-performing assets in accordance with the applicable norms. The action was taken under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.