Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
25 Jun 2012
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Dahod Urban Co-operative Bank Ltd., Dist. Dahod, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not reported, or had wrongly submitted, Cash Transaction Reports for cash transactions exceeding Rs 10 lakh to FIU-IND, contrary to AML guidelines. After considering the bank's written reply and personal submissions, RBI concluded that the violation was substantiated and warranted 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 the bank failed to report, or wrongly submitted, Cash Transaction Reports for cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India. The bank had received a show cause notice and submitted a written reply and personal submissions, but RBI held the violation to be substantiated and deserving of penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not impose a new operational restriction. The adverse finding concerns AML reporting compliance and may prompt stronger internal controls for CTR reporting and FIU-IND compliance going forward.
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