Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
23 Mar 2011
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1.00 lakh on The Uttarsands People Co-operative Bank Limited, Uttarsanda, Dist. Kheda, Gujarat. The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violation of RBI guidelines on reporting cash transactions in excess of Rs 10 lakh to FIU-IND under anti-money laundering requirements. RBI issued a show-cause notice, the bank replied in writing, and RBI concluded that the violations were substantiated and that penalty was warranted.
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) for violation of RBI's guidelines requiring reporting of cash transactions above Rs 10 lakh to the Financial Intelligence Unit-India (FIU-IND). The bank submitted a written reply to the show-cause notice, but RBI concluded the violations were substantiated and warranted penalty.
Operating Impact
The bank must absorb the monetary penalty; the release does not indicate any suspension, restriction, or other operational prohibition. The action is compliance-focused and primarily affects the bank's regulatory standing rather than customers directly.
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