Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
22 Feb 2011
Case Brief
The Reserve Bank of India has imposed a monetary penalty of Rs 1.00 lakh on Amreli Nagarik Sahkari Bank Ltd., Amreli under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was for violation of Section 5(ccv) of the Act and RBI instructions on anti-money laundering guidelines. RBI had issued a show-cause notice, considered the bank's reply, and concluded that the violations were substantiated.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on Amreli Nagarik Sahkari Bank Ltd., Amreli under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The violations found to be substantiated related to Section 5(ccv) of the Act and non-compliance with RBI instructions on anti-money laundering (AML) guidelines. The bank had submitted a written reply to a show-cause notice, but RBI concluded the contraventions warranted penalty.
Operating Impact
The bank must bear the penalty payment and any internal compliance remediation needed for AML and regulatory compliance. The action does not state any additional operating restriction or deadline affecting depositors or customers.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
- Section 5(ccv) of B.R.Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank