RBI slaps Rs 4 lakh fine on Progressive Co-op Bank

23/02/2017 15:01

The Reserve Bank of India has imposed a monetary penalty of Rs 4 lakh on Progressive Co-operative Bank Ltd. for violation of NBFC and KYC norms.

“The Reserve Bank of India has imposed a monetary penalty of Rs 4.00 lakh on Progressive Co-operative Bank Ltd., Mumbai in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for violation of instructions/guidelines issued by the Reserve Bank of India relating to lending to nominal members, financing an NBFC and KYC norms,” RBI said in a notification.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.

After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

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