Reserve Bank of India penalises The Waghodia Urban Co-operative Bank Ltd., District Vadodara
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Waghodia Urban Co-operative Bank Limited, District Vadodara, under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty followed RBI’s finding that the bank had violated its directives/guidelines by not adhering to Anti-Money Laundering (AML) guidelines, after considering the bank’s reply to the show-cause notice and its personal submissions.
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after finding that The Waghodia Urban Co-operative Bank Limited had violated Reserve Bank directives/guidelines by failing to comply with AML guidelines. RBI issued a show-cause notice, considered the bank’s written reply and personal submissions, and concluded that the violations were substantiated and warranted penalty.
Severity Assessment
This is a monetary penalty of Rs 1 lakh, which falls in the lowest monetary band and has no separate operational restriction floor.
The bank must bear the monetary penalty, but the release does not indicate any broader restriction on operations or customer activity. The action is backward-looking and compliance-focused, with the immediate impact limited to the penalized entity.
Published as The Waghodia Urban Co-operative Bank Limited
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