The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on The District Cooperative Central Bank Ltd., Mahabubnagar, Andhra Pradesh in exercise of powers vested in it under the provisions of Section 47(A) read with Section 46 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.

Sucheta Vazkar

Manager

KYC and AML non compliance leads to penalty under the Banking Regulation Act after show cause and bank submissions. Non adherence to Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines led the Reserve Bank to issue a show cause notice to The District Co operative Central Bank Ltd., Mahabubnagar; after considering the bank's written reply and personal submissions the RBI found the violations substantiated and, exercising powers under Section 47A read with Section 46 of the Banking Regulation Act (as applicable to co operative societies), imposed a monetary penalty.