The Limbasi Urban Co-operative Bank Limited, Limbasi, Dist. Kheda – Penalised

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on The Limbasi Urban Co-operative Bank Limited, Limbasi, District Kheda, Gujarat, under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS). The penalty was levied for violation of RBI instructions requiring reporting of cash transactions in excess of Rs 10 lakh to FIU-IND under the AML guidelines. RBI issued a show-cause notice, considered the bank's written reply and personal submissions, and concluded that the violations were substantiated.