The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees Five Lakh only) on The Aurangabad District Industrial and Urban Co-operative Bank Ltd., Aurangabad in exercise of powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) for violation of the directives issued by Reserve Bank of India on KYC/AML guidelines, non-introduction of Concurrent Audit System, submission of wrong/unsatisfactory/delayed compliance to RBI Inspection Report and concentration of Deposits.

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 and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

Ajit Prasad

Assistant General Manager

KYC/AML non-compliance triggers regulatory penalty following substantiated violations including audit lapse and deposit concentration in a cooperative bank The Reserve Bank imposed a monetary penalty on The Aurangabad District Industrial and Urban Co operative Bank Ltd. for violations of KYC/AML guidelines, non introduction of a Concurrent Audit System, wrong/unsatisfactory/delayed compliance to an inspection report, and concentration of deposits; a show cause notice was issued, the bank replied, and the regulator found the violations substantiated before imposing the penalty.