Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
11 Jun 2015
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Pij People’s Co-operative Bank Ltd., Pij, Dist. Kheda (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated norms relating to risk categorization of accounts and failed to report Cash Transaction Reports (CTRs) to the Financial Intelligence Unit-India, New Delhi. After issuing a Show Cause Notice and considering the bank’s written and personal submissions, RBI concluded that the violations were substantiated and warranted the 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 (as applicable to co-operative societies) after concluding that the bank had violated norms relating to risk categorization of accounts and failed to report Cash Transaction Reports (CTRs) to the Financial Intelligence Unit-India, New Delhi. The bank had received a Show Cause Notice, submitted a written reply, and made personal submissions, but RBI found the violations substantiated and warranting penalty.
Operating Impact
The bank must absorb the ₹1 lakh penalty; the order does not describe any further operational restriction. The action is forward-looking only in the sense of the financial penalty and the compliance signal on account-risk classification and CTR reporting.
Regulatory Basis
- Section 47A(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