Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
11 Apr 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty on The Rander People's Co-operative Bank Limited, Rander, Dist. Surat, Gujarat under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). RBI said the bank had not adhered to its AML guidelines, specifically in relation to submission of reports of cash transactions above Rs 10 lakh to FIU-IND. After issuing a show-cause notice and considering the bank's written reply and personal submissions, RBI concluded that the violations were substantiated and imposed a penalty of Rs 1.00 lakh.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) after concluding that the bank had violated RBI instructions by not adhering to AML guidelines in respect of reporting cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India (FIU-IND), New Delhi. The bank had replied to a show-cause notice and made personal submissions, but RBI found the violations substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; no operational restriction, suspension, or cancellation is indicated in this release. The action is backward-looking, based on past AML reporting lapses, and does not by itself impose further compliance conditions beyond the penalty.
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