KYC: Tumkur Grain Merchants Co-op Bank penalized

The Reserve Bank of India has imposed a monetary penalty of Rs five lakh on Tumkur Grain Merchants Co-operative Bank based in Tumkur, Karnataka, in exercise of the powers vested in it.

The UCB was fined for violating Reserve Bank of India’s instructions and guidelines on Know Your Customer (KYC) norms, Anti-Money Laundering (AML) standards, Combating of Financing of Terrorism (CFT) and Obligation of banks under PMLA, 2002.

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 and bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.

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