RBI imposes penalty on The Jambusar Peoples Co-operative Bank Ltd., Jambusar, Dist. Bharuch (Gujarat)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹3.00 lakh on The Jambusar Peoples Co-operative Bank Ltd., Jambusar, Dist. Bharuch (Gujarat). The penalty was levied under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies), for violations of operational instructions issued under Section 36(1) of the Act, issues relating to submission of the quarterly certificate of holding of Government securities, and deficiencies in AML compliance concerning submission of cash transaction reports to FIU-IND and implementation of a system for identifying suspicious transactions. RBI had issued a show-cause notice based on inspection findings as on 31.03.2015, considered the bank’s written reply and personal submission, and concluded that the violations were substantiated and warranted the penalty.