The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5 lakh on Amreli Nagarik Sahakari Bank Ltd in Amreli district for violating RBI guidelines regarding issuance of at-par cheques/pay orders against receipt of cash, an RBI statement said.
The banking regulator, according to the statement, had exercised its powers vested on it under the provisions of Section 47 A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 for violation of RBI guidelines regarding issuance of at-par cheques/pay orders against receipt of cash.
"The Reserve Bank of India had issued a show cause notice to the bank based on the findings of inspection for the financial position as on March 31, 2013," the statement said, adding that the bank submitted a written reply in response to the notice.
