The Reserve Bank of India has imposed a monetary penalty of Rs.5.00 lakh (Rupees five lakh only) on The Coimbatore District Central Co-operative Bank Ltd., Tamil Nadu 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 non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.

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 facts of the case, the bank's reply and personal submissions 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 regulator imposing monetary penalty after violation found substantiated following show-cause process. The Reserve Bank of India imposed a monetary penalty on The Coimbatore District Central Co-operative Bank Ltd. for non-adherence to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines under statutory powers applicable to co-operative societies. The penalty followed issuance of a show cause notice, consideration of the bank's written reply and personal submissions, and a regulatory finding that the violations were substantiated and warranted imposition of a financial penalty.