The Reserve Bank of India has imposed a monetary penalty on Jamia Cooperative Bank based in Okhla Road, New Delhi.
The penalty has been imposed on the bank for violation of several norms including Know Your Customer (KYC) and Anti Money Laundering (AML) norms, carrying out sufficient customer identification procedures, ascertaining the identification of natural persons behind entities, carrying out enhanced due diligence and appropriate risk categorization.
Also it included non-compliance of Income Recognition and Asset Classification (IRAC) norms by transfer of funds from one account to another and involvement of the directors in day-to-day affairs of the bank.
Jamia Co-op Bank was also found guilty of diversion of funds from loan accounts through current/savings bank accounts of borrowers to firms in which directors have an interest.
