Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
8 Apr 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on Shree Savli Nagrik Sahakari Bank Ltd., District Vadodara under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not adhered to its Anti-Money Laundering (AML) instructions/guidelines. After issuing a show-cause notice and considering the bank's written and personal submissions, RBI concluded that the violations were substantiated and merited penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after concluding that the bank had violated RBI instructions/guidelines on Anti-Money Laundering (AML). The bank had been issued a show-cause notice, submitted a written reply, and made personal submissions, but RBI found the violations substantiated and warranting penalty.
Operating Impact
The bank must absorb the penalty and ensure stronger compliance with RBI AML directions going forward. The action does not impose an operational restriction, but it signals continued regulatory scrutiny over its anti-money-laundering controls.
Regulatory Basis
- Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank