Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
1 Mar 2011
Case Brief
The Reserve Bank of India penalised Shri Lodra Nagarik Sahakari Bank Ltd., Lodra, District Gandhinagar, with a monetary penalty of Rs 1 lakh under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had breached instructions on implementation of KYC norms and on filing Cash Transaction Reports with FIU-IND. After considering the bank's written reply to the show-cause notice, RBI held that the violations were substantiated and imposed the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after finding that Shri Lodra Nagarik Sahakari Bank Ltd. violated RBI instructions relating to implementation of Know Your Customer (KYC) norms and filing of Cash Transaction Reports (CTR) with FIU-IND, New Delhi. The bank had received a show-cause notice and submitted a written reply, but RBI concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the financial penalty and continue complying with RBI instructions on KYC and CTR reporting. The action does not impose an operational restriction, but it signals heightened compliance scrutiny for the bank's AML/KYC and reporting processes.
Regulatory Basis
- Section 47(A)(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