The Reserve Bank has imposed a monetary penalty of Rs 1 lakh on Kheda-based Pij People's Cooperative Bank for violation of anti-money laundering guidelines.

"RBI has imposed a monetary penalty of Rs 1 lakh on the Pij People's Cooperative Bank Ltd... for not reporting cash transactions in excess of Rs 10 lakh to Financial Intelligence Unit-India (FIU-IND), as required under the Anti-Money Laundering guidelines," the apex bank said in a statement.

The RBI had earlier issued a showcause notice to the cooperative bank, in response to which the lender had submitted a written reply.

"After considering the facts of the case and the bank's reply and also personal submissions in the matter, RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty," the statement said. (PTI)