Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
26 May 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,00,000 on The Unava Nagarik Sahakari Bank Ltd., Unava, District Mehsana, Gujarat. The penalty was levied under Section 46 read with Section 47A of the Banking Regulation Act, 1949 (AACS) for violation of RBI instructions due to non-adherence to Anti Money Laundering (AML) guidelines. RBI had issued a show cause notice, received the bank's written reply and personal submission, and concluded that the violations were substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 46 read with Section 47A of the Banking Regulation Act, 1949 (AACS) for violation of RBI instructions, specifically non-adherence to Anti Money Laundering (AML) guidelines. A show cause notice was issued, the bank replied in writing, and after considering the facts, reply, and personal submission, RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must bear the monetary penalty and the action serves as an enforcement signal regarding AML compliance. The release does not describe any operational restriction beyond the fine, but it reflects RBI's finding of compliance lapses by the bank.
Regulatory Basis
- Section 46 read with Section 47A 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