Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Sept 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Mansa Nagarik Sahakari Bank Ltd., Mansa, Dist. Gandhinagar, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was imposed for violation of RBI instructions on submission of Cash Transaction Reports (CTRs) in respect of cash transactions above Rs 10 lakh to FIU-IND under the AML guidelines. RBI said it had issued a show cause notice, considered the bank's reply and personal submissions, and found the violation substantiated.
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) because the bank violated RBI's instructions on submitting Cash Transaction Reports (CTRs) for cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India (FIU-IND), New Delhi, under the Anti Money Laundering (AML) guidelines. RBI issued a show cause notice; after considering the bank's written reply and personal submissions, it concluded the violation was substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not describe any operational restriction or license action. The forward-looking effect is financial and reputational, with continued obligation to comply with AML/CTR reporting requirements to FIU-IND.
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