Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
22 Feb 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Jamnagar Mahila Sahakari Bank Ltd., Jamnagar under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty followed a show-cause process, and RBI held that the bank had violated its Anti-Money Laundering (AML) instructions. After considering the bank's written reply and the facts of the case, RBI concluded that the violations were substantiated and merited the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after concluding that the bank had violated RBI instructions on AML guidelines. The bank had submitted a written reply to the show-cause notice, but the violations were found substantiated.
Operating Impact
The bank must absorb the penalty and comply more strictly with RBI AML instructions going forward. The order has no stated operational restriction, but it reflects regulatory non-compliance relevant to AML controls and customer due diligence.
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