The Reserve Bank of India has imposed a fine on Vadodara based cooperative lender, Pragati Sahakari Bank Limited for non adherence to its norms.

A penalty of Rs 1 lakh has been issued on the bank on charges of non adherence to guidelines related to share linking norms, single borrower exposure ceiling and Anti Money Laundering (AML) guidelines as well as reporting all financial transactions above Rs 10 lakh to the financial intelligence unit.

Prior to imposing the penalty, the apex bank had sought a show cause notice to the bank in reply to which the bank had submitted a written reply.