The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1 lakh on Ahmedabad-based Gujarat Mercantile Co-operative Bank Ltd for violation of RBI directives and persistence of irregularities pointed out in the previous RBI inspection report.
In its statement issued on Friday, RBI informed that the cooperative bank is penalised for Rs 1 lakh for violation of RBI's directives or instructions relating to filing of suspicious transaction reports as required under Anti Money Laundering guidelines and persistence of irregularities pointed out in the previous inspection report by the RBI. It had issued a show cause notice to the bank in response to which the bank submitted a written reply. Based on the bank's reply th e RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty.