RBI fines District Cooperative Central Bank Rs. 5 lakh for KYC and AML violations under Banking Regulation Act.

The Reserve Bank of India imposed a penalty of Rs. 5 lakh on The District Cooperative Central Bank Ltd., Mahabubnagar, Andhra Pradesh, for failing to adhere to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines. This action was taken under the Banking Regulation Act, 1949, applicable to cooperative societies. The bank received a show cause notice and responded with a written reply. After reviewing the case details, the Reserve Bank determined that the violations were substantiated, justifying the penalty.