The Reserve Bank of India has imposed a monetary penalty of Rs. 2.00 lakh (Rupees two lakh only) on Rajsamand Urban Co-operative Bank Limited, Rajsamand in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violating the Know Your Customers (KYC) norms and Anti Money Laundering (AML) directives of Reserve Bank of India.

The Reserve Bank of India had issued a show cause notice to the bank in response to which the bank submitted a written reply. After considering the bank's reply in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.

Ajit Prasad

Assistant General Manager

KYC and AML non compliance leads to monetary penalty after show cause process under the Banking Regulation enforcement framework. The Reserve Bank imposed a monetary penalty under Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act for breaches of KYC norms and AML directives by Rajsamand Urban Co operative Bank Limited. The bank received a show cause notice, submitted a written reply, and the Reserve Bank, after considering that reply, concluded the violations were substantiated and imposed the penalty.