Reserve Bank of India has imposed a monetary penalty on two banks of Gujarat other than Baroda city cooperative bank. It has imposed Rupees five lakh on Shreenath Co-operative Bank for violation of Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.
The Mehsana Nagarik Sahakari Bank is the second bank from Gujarat which fell under RBI’s scalpel. A monetary penalty of Rupees one lakh was imposed on the bank for violation of Reserve Bank of India’s instructions relating to Anti Money Laundering (AML) guidelines.
The Reserve Bank of India had issued a show cause notice to both the banks, in response to which the banks submitted a written reply. After considering the bank’s reply in the matter and submission made during the personal hearing, the apex Bank came to the conclusion that the violation was substantiated and warranted imposition of the penalty.