Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Mar 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty on Sulaimani Co-operative Bank Limited, Vadodara, Dist. Vadodara under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not adhered to operational instructions specifically issued to it, including ceiling limits on inter-bank deposits, inspection compliance requirements, and anti-money laundering guidelines. After issuing a show-cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and deserved a penalty of Rs 1 lakh.
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 Sulaimani Co-operative Bank Limited did not adhere to operational instructions specifically issued to it by RBI, including directions on ceiling on inter-bank deposits, inspection compliance requirements, and anti-money laundering (AML) guidelines. RBI considered the bank's reply to the show-cause notice but concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any suspension or operational ban. The compliance concerns cited relate to inter-bank deposit limits, inspection compliance, and AML controls, but no additional forward-looking restriction is announced in this press release.
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