RBI imposes monetary penalty on Progressive Mercantile Co-operative Bank Limited, Dist. Ahmedabad, Gujarat

Case Brief

RBI, by order dated September 08, 2025, imposed a monetary penalty on Progressive Mercantile Co-operative Bank Limited, Dist. Ahmedabad, Gujarat. The action followed a statutory inspection with reference to the bank’s financial position as on March 31, 2024, and supervisory findings that the bank had not complied with RBI directions relating to inspection and audit systems, KYC, and customer protection for unauthorized electronic banking transactions. RBI noted that the bank conducted concurrent audit quarterly rather than as a simultaneous check, submitted reports with delays, failed to periodically review risk categorisation of certain accounts at least once in six months, and did not enable customers to instantly reply to SMS alerts to object to unauthorized electronic banking transactions. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.