The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on Adarh Urban Co-operative Bank Limited, Sirohi 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 results in a regulatory monetary penalty after a show cause process and statutory enforcement. The regulator exercised statutory powers to impose a monetary penalty on Adarsh Urban Co operative Bank Limited for violations of Know Your Customer (KYC) norms and Anti Money Laundering (AML) directives. A show cause notice was issued, the bank submitted a written reply, and the regulator, after considering that reply, concluded the violations were substantiated and imposed the penalty under the banking statute as applicable to cooperative societies.