Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on Progressive Co-operative Bank Ltd., Mumbai under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated instructions/guidelines relating to lending to nominal members, financing an NBFC, and KYC norms. After a show-cause notice, the bank submitted written and oral replies, but RBI concluded that the violations were substantiated and warranted the penalty.