<h1>RBI Regulates Cooperative Banks Under Banking Regulation Act; Penalizes 32 UCBs for KYC/AML Violations.</h1> The Reserve Bank of India (RBI) oversees the banking functions of State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), and Urban Cooperative Banks (UCBs) under the Banking Regulation Act, 1949, while incorporation and management fall under the Registrar of Co-operative Societies. NABARD has inspection powers over StCBs and DCCBs, reporting deposits of Rs. 356,467 crore as of March 2015, with 12 banks having negative net worth. RBI enforces uniform Know Your Customer (KYC) norms across banks, but has noted some KYC/AML violations, imposing penalties on 32 UCBs. Compliance is monitored through regular reporting to the Financial Intelligence Unit-India.