The RBI also faulted it for not correctly reporting loans to directors to Reserve Bank of India in the statutory returns on advances to directors.
The other charge included not submitting Cash Transaction Reports (CTRs) to Financial Intelligence Unit-India (FIU-IND),New Delhi.
Another Urban Cooperative Bank which was punished by RBI is Janatha Seva Co-operative Bank, Bangalore for violation of Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.
The Reserve Bank of India imposed Rs five lakh penalty on the bank last week.
