Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
17 Jun 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Padra Nagar Nagarik Sahakari Bank Limited, Vadodara, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI found that the bank had failed to report cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India, as required under Anti Money Laundering guidelines. After issuing a show cause notice and considering the bank's written reply, RBI concluded that the violations were substantiated and warranted the penalty.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after concluding that the bank had not reported cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India, contrary to Anti Money Laundering guidelines. The bank submitted a written reply to the show cause notice, but RBI found the violations substantiated and warranting penalty.
Operating Impact
The bank must absorb a Rs 1 lakh penalty, but the release does not describe any operational restriction or licence impact. The forward-looking effect is limited to the financial penalty and the compliance signal to the bank regarding AML and FIU-IND reporting obligations.
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