Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
25 Mar 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Bhabhar Vibhag Nagrik Sahakari Bank Limited, Bhabhar, Dist. Banaskantha, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank violated instructions on maintenance of records of cash transactions over Rs 10 lakh and on reporting those transactions to FIU-IND. RBI said the violations were substantiated after considering the bank's reply and oral submissions, and therefore imposed 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). The bank was found to have violated RBI instructions on maintaining records of cash transactions above Rs 10 lakh and reporting such transactions to the Financial Intelligence Unit-India (FIU-IND), New Delhi. After a show-cause notice, written reply, and personal submissions, RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear a financial penalty of Rs 1 lakh, but the release does not impose any operational restriction or licence impact. The action is backward-looking and mainly signals compliance expectations around cash-transaction record keeping and FIU-IND reporting.
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