The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on the Chanasma Nagrik Sahakari Bank based in the district of Patan in Gujarat.
The UCB was fined for the violation of Know Your Customer (KYC) and Anti Money Laundering (AML) guidelines.
The Reserve Bank of India had issued a Show Cause Notice to the bank based on the findings of inspection of the bank for the financial position as on March 31, 2013, in response to which the bank submitted a written reply and made personal submission to the Regional Director, RBI, Ahmedabad.
After considering the facts of the case and the bank’s reply in the matter, RBI came to the conclusion that the violation was substantiated and warranted imposition of the penalty.
