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The Jambusar Peoples Co-operative Bank Ltd., Jambusar, Dist. Bharuch (Gujarat)

Co-operative bankJambusar, Gujarat

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 3.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

31 Mar 2016

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Jambusar Peoples Co-operative Bank Ltd., Jambusar, Dist. Bharuch (Gujarat). The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), for violations of operational instructions issued under Section 36(1) of the Act, issues relating to submission of the quarterly certificate of holding of Government securities, and deficiencies in AML compliance concerning submission of cash transaction reports to FIU-IND and implementation of a system for identifying suspicious transactions. RBI had issued a show-cause notice based on inspection findings as on 31.03.2015, considered the bank’s written reply and personal submission, and concluded that the violations were substantiated and warranted the penalty.

Why RBI Acted

Governance oversightReporting & disclosureKYC / AML

RBI imposed a monetary penalty after an inspection-based show cause process found that the bank had violated operational instructions issued under Section 36(1) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), delayed/non-compliant submission of the quarterly certificate of holding of Government securities, and failed in AML-related requirements, including submission of cash transaction reports to FIU-IND and putting in place a system for identifying suspicious transactions.

Operating Impact

The bank must absorb the ₹3 lakh penalty; the release does not impose a new operating restriction or licence action. The action serves as a regulatory censure for compliance lapses, especially around government securities reporting and AML controls, but no direct customer-facing operational cap is stated.

Regulatory Basis

  • Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
  • Section 36(1) of B R Act, 1949 (As applicable to Co-operative Societies)

Action Facts

Primary Impact
Fine: Rs 3.00 L
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank