Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
13 Apr 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2.00 lakh on The Salal Sarvoday Nagrik Sahakari Bank Limited, Salal, Dist. Sabarkantha, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The bank was found to have violated RBI instructions on submitting reports of cash transactions above Rs 10 lakh to FIU-IND under anti-money laundering guidelines. RBI said it had issued a show-cause notice, received the bank's written reply and personal submissions, and concluded that the violations were substantiated.
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) for violation of instructions relating to submission of reports of cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India (FIU-IND), New Delhi, under anti-money laundering guidelines. RBI issued a show-cause notice, considered the bank's written reply and personal submissions, and concluded the violations were substantiated.
Operating Impact
The bank must absorb the penalty and remain compliant with RBI’s AML and transaction-reporting requirements going forward. The action does not state any operational restriction, but it signals enhanced compliance expectations around cash-transaction reporting to FIU-IND.
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 2.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank