Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
4 Feb 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Janata Co-op. Bank Ltd., Godhra, Dist. Panchmahal under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank violated instructions on persistence of irregularities mentioned in a previous inspection report and on reporting cash transactions above Rs 10 lakh to FIU-IND, as required under AML guidelines. After a show-cause notice and the bank's written reply, RBI held that the contraventions were substantiated and deserved 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). The bank was found to have violated RBI instructions relating to persistence of irregularities from the previous inspection report and the requirement to report cash transactions exceeding Rs 10 lakh to FIU-IND under AML guidelines. RBI issued a show-cause notice, considered the bank's written reply, and concluded that the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty and continue complying with RBI instructions, particularly inspection-related remediation and AML reporting obligations. The action has no direct operational restriction, but it signals continued supervisory scrutiny over compliance controls.
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