Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Gujarat Mercantile Co-operative Bank Ltd., Ahmedabad (Gujarat), under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was levied for violating RBI directives/instructions on filing Suspicious Transaction Reports required under Anti Money Laundering guidelines, as well as for persistence of irregularities identified in the previous RBI inspection report. RBI had issued a show cause notice, and after considering the bank's written reply and personal submissions, concluded that the violations were substantiated and warranted penalty.