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The Reserve Bank of India has imposed a penalty of Rs 1 lakh each on two Gujarat-based cooperative sector lenders for violation of various rules, including anti-money laundering guidelines.
The two banks are — the Surat-headquartered Rander People’s Co-operative Bank and Vadodara-based Shree Mahalaxmi Mercantile Co-operative Bank, the apex bank said.
The RBI has imposed a monetary penalty of Rs 1 lakh on the Rander People’s Co-operative Bank for certain violation of the apex bank’s instructions with regard to anti-money laundering guidelines. The specific compliant is in respect of filing of reports of cash transactions above Rs 10 lakh.
The central bank added that in the case of Shree Mahalaxmi Mercantile Co-operative Bank, the penalty has been imposed for violation of operational instructions by sanctioning fresh loans and advances.
The decision to penalise the two banks was reached following issuing of show cause notices to them and consideration of the written replies submitted by the lenders.
RBI’s latest announcement comes within days of similar penalties imposed by it on five other cooperative sector banks based in the western state.
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