Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
3 Nov 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Mehsana Nagarik Sahakari Bank Ltd., Mehsana (Gujarat) under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated its instructions relating to Anti Money Laundering (AML) guidelines. After considering the bank's written reply to the show-cause notice and the facts of the case, RBI concluded that the contravention 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 (as applicable to co-operative societies). The bank was found to have violated RBI's instructions relating to Anti Money Laundering (AML) guidelines; after considering the show-cause notice, the bank's written reply, and the facts of the case, RBI concluded the violation was substantiated and warranted penalty.
Operating Impact
The bank must absorb the financial penalty and ensure continued compliance with RBI's AML instructions. No broader operational restriction is stated in the release, but the violation may invite closer compliance scrutiny going forward.
Regulatory Basis
- Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank