RBI imposes penalty on The Pij Peoples Co-operative Bank Ltd., Pij, Dist. Kheda

Case Brief

The Reserve Bank of India imposed a monetary penalty on The Pij People’s Co-operative Bank Ltd., Pij, Dist. Kheda (Gujarat) under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank violated norms relating to risk categorization of accounts and failed to report Cash Transaction Reports (CTRs) to the Financial Intelligence Unit-India, New Delhi. After issuing a Show Cause Notice and considering the bank’s written and personal submissions, RBI concluded that the violations were substantiated and warranted the penalty.