Pragati Sahakari Bank Limited, Vadodara

RBI has imposed a penalty of Rs 5 lakh on Pragati Sahkari Bank Ltd., Vadodara. The penalty was for director-related advances, excessive unsecured loans, and failure to report frauds to RBI.

The bank must bear the financial penalty of Rs 5 lakh, and the order serves as a regulatory finding of non-compliance. There is no stated operational restriction, but the bank remains exposed to compliance scrutiny on lending practices, related-party exposures, and fraud reporting obligations.

• Section 47A (1) (b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
• Section 20 and 20A of the B.R. Act, 1949(AACS)

RBI imposed a penalty of Rs 1 lakh on Pragati Sahakari Bank Limited, Vadodara. The bank was found to have breached share linking norms, single borrower exposure limits, and AML reporting requirements.

The bank must bear the penalty and may face continued regulatory scrutiny for compliance with lending exposure limits, share-linking requirements, and AML reporting obligations. No operational restriction is imposed by this release, but the order underscores the need for stricter compliance controls going forward.

• Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)