The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on Pithoragarh Jila Sahakari Bank Ltd., Pithoragarh, Uttarakhand 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 results in a supervisory monetary sanction after show cause process and consideration of submissions. The central bank invoked powers under the Banking Regulation Act (as applicable to co operative societies) to address non adherence to KYC norms and AML guidelines by a cooperative district bank; after issuing a show cause notice and considering the bank's written reply and personal submissions, the regulator found the violations substantiated and imposed a monetary sanction.