India, Aug. 25 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh on The Pragathi Co-operative Bank Ltd, Karnataka, for violating certain provisions of the Banking Regulation Act, 1949, and failing to comply with multiple regulatory directions applicable to urban co-operative banks.
The penalty, imposed through an order dated August 20, 2026, relates to norms governing loans and advances to directors and related entities, exposure limits, and the classification, valuation and operation of investment portfolios.
The action followed an RBI statutory inspection of the bank's financial position as of March 31, 2025. After reviewing the bank's response to the regulatory notice and submissions made during a personal ...