The Reserve Bank of India has imposed a monetary penalty of Rupees one lakh on Shree Mahalaxmi Mercantile Co-operative Bank Limited, Dabhoi, Dist. Vadodara, Gujarat for violation of operational instructions by sanctioning fresh loans and advances.
RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank’s reply and also personal submissions in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
Earlier, RBI had imposed a monetary penalty of Rupees one lakh on Shree Savli Nagrik Sahakari Bank Ltd. The penalty was imposed for not adhering to Reserve Bank of India instructions and guidelines on Anti-Money Laundering (AML) guidelines.
RBI also imposed penalty on the third bank in Vadodara, Shree Bharat Co-operative Bank Ltd. for not adhering to Anti-Money Laundering (AML) guidelines, regarding submission of reports for cash transactions above `10.00 lakh.
Earlier,RBI had imposed a monetary penalty of Rupees one lakh on Navsarjan Industrial Co-operative Bank Ltd., Ankleshwar. The penalty was imposed again for not adhering to Anti-Money Laundering (AML) guidelines.
The Waghodia Urban Co-operative Bank Limited another cooperative bank located in Vadodara also came under RBI scanner for violation of its guidelines by not adhering to Anti-Money Laundering (AML) guidelines.
