Bank fined Rs one lakh for not complying with RBI guidelines

Ahmedabad, Mar 26: The Reserve Bank of India has imposed penalty of Rs one lakh on Bhabhar Vibhag Nagrik Sahakari Bank Limited (BVNSBL) in Gujarat for not complying with the guidelines on reporting financial transactions of Rs 10-lakh plus.

"The RBI has imposed a penalty of Rs one lakh on the Bhabhar Vibhag Nagrik Sahakari Bank Limited, of district Banaskantha," an official statement said yesterday.

The bank had failed to follow RBI's instructions on maintenance of records of cash transactions of over Rs 10-lakh, and reporting them to Financial Intelligence Unit-India.

BVNSBL had earlier been served a show-cause notice by the apex bank. After it submitted a reply, the penalty was imposed, an RBI official said.

PTI