The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Pragati Sahkari Bank located in Vadodara.
Pragati Sahkari bank was faulted on the counts of director related advances.The UCB was also found to grant of unsecured loans beyond the stipulated ceiling.Last but not the least the bank was found not reporting frauds to Reserve Bank of India.
The Reserve Bank of India issued a Show Cause Notice to the bank in response to which the bank submitted a written reply. After considering the facts of the case and the bank’s replies in the matter, the Reserve Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty.