Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 lakh on Gujarat-based Shri Janata Sahakari Bank for violation of anti-money laundering guidelines.
“The RBI has imposed a monetary penalty of Rs 1 lakh on Shri Janata Sahakari Bank Ltd, Halol, in exercise of powers vested in it for not reporting cash transactions in excess of Rs 10 lakh to Financial Intelligence Unit-India (FIU-IND), as required under the Anti-Money Laundering guidelines,” the apex bank said in a statement.
The RBI had earlier issued a show cause notice to the bank, in response to which Shri Janata Sahakari Bank submitted a written reply.
“After considering the facts of the case and the bank’s reply, as also personal submissions in the matter, the RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty,” RBI said.
RBI has penalised over 60 small banks so far this calendar year for lapses in implementing customer identification norms and various other violations. The penalties ranged from Rs 1 lakh to Rs 5 lakh.