The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on Dharmapuri District Central Co-operative Bank Ltd., Tamil Nadu, 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.

Ajit Prasad

Assistant General Manager

KYC and AML non compliance prompts regulatory monetary penalty against a cooperative bank under banking regulation powers. The Reserve Bank imposed a monetary penalty on a district central co operative bank under the Banking Regulation Act (as applicable to co operative societies) for non adherence to KYC norms and AML guidelines after issuing a show cause notice, considering the bank's written reply and personal submissions, and concluding the violations were substantiated.