Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
16 Jun 2011
Case Brief
The Reserve Bank of India penalised The Pij People's Co-operative Bank Limited, Pij Dist. Kheda, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The violation was non-reporting of cash transactions in excess of Rs 10 lakh to FIU-IND, contrary to AML requirements. RBI considered the bank's written reply and personal submissions but concluded that the contraventions were established.
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) after concluding that The Pij People's Co-operative Bank Limited had not reported cash transactions exceeding Rs 10 lakh to the Financial Intelligence Unit-India, in breach of anti-money laundering guidelines. The bank replied to the show-cause notice and made personal submissions, but RBI held that the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty of Rs 1 lakh. The action does not describe any restriction on current banking operations, but it records an AML compliance lapse that may be relevant for future supervisory scrutiny.
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