Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on Progressive Co-operative Bank Limited, Mumbai, Maharashtra, after a statutory inspection found breaches of RBI directions relating to exposure norms and investments by primary urban co-operative banks. RBI said the bank had not adhered to prudential inter-bank gross exposure and inter-bank counterparty limits. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after considering the bank's reply and oral submissions.