The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh on Pragati Mahila Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh. The UCB was faulted for contravention of directions issued by the RBI to Urban Co-operative Banks on “Exposure Norms and Statutory / Other Restrictions –UCBs”.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
A scrutiny of the records of the bank based on its financial position as on March 31, 2021, revealed, inter alia, that the bank had sanctioned unsecured advances above the permissible limit in certain cases.