According to a recent press report the Reserve Bank of India, banking and monetary regulator of the country has penalized a Gujarat based cooperative bank on grounds of non adherence to its directives. The regulator has fined Mansa Nagarik Sahakari Bank Ltd (MNSBL).
The apex bank issued the penalty on the bank on charges of violation of anti money laundering guidelines. The regulator has imposed a fine of Rs 1 lakh on the Mansa Nagarik Sahakari Bank Ltd (MNSBL).
The RBI had issued a show cause notice to MNSBL before it could charge the penalty and the bank submitted a written reply as a response.
Reports said that following the bank’s reply and considering the facts of case the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.
The Reserve Bank of India (RBI) is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion (2010) of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934. In its effort to control inflation it has hiked lending rates 12 times since March, 2010. The hike has made auto loan, home loan and other loans more expensive.