Last week saw Reserve Bank of India imposing monetary penalty on four urban cooperative banks spread in Gujarat and Maharashtra.Three are located in the state of Gujarat and one in Maharashtra.
RBI imposed a monetary penalty of Rupees five lakh on Alavi Co-operative Bank, Vadodara, Gujarat for non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines by the bank.
Another urban cooperative bank to fall under the scanner of RBI in Gujarat is Mansa Nagarik Sahakari Bank in Gandhinagar. Apex bank imposed a penalty of Rupees one lakh for violation of Reserve Bank India’s instructions on submission of Cash Transaction Reports (CTRs) in respect of cash transaction above Rs 10.00 lakh to Financial Intelligence Unit-India (FIU-IND), New Delhi under the Anti Money Laundering (AML) guidelines.
Third bank is Porbandar Vibhagiya Nagarik Sahakari Bank on which RBI imposed a monetary penalty of Rupees one lakh for violation of its instructions regarding Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.
Shri Mahavir Urban Co-operative Bank, Solapur was also faulted by RBI which imposed a monetary penalty of Rupees one lakh for violation of the directives guidelines of the Reserve Bank on individual/single exposure ceiling for lending operations by Urban Co-operative Banks.
The Reserve Bank of India had issued a show cause notices to all the above-mentioned banks. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.
