RBI imposes penalty on Mumbai District Central Co-operative Bank for violating KYC norm

Mumbai, Jan 4 (KNN) The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 lakh on Mumbai District Central Co-operative bank Ltd, Mumbai, Maharashtra, for violations of RBI norms with regards to Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) measures.

The apex bank said in statement that it has imposed a monetary penalty of Rs 1.00 lakh on Mumbai District Central Co-operative bank Ltd., Mumbai, Maharashtra in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violations, of the directives/ guidelines/ instructions of the Reserve bank of India relating to Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) measures.

A show cause notice had been issued to the bank, in response to which the bank submitted a written reply and also made oral submission thereon.

After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty, the central bank said. (KNN Bureau)