The Reserve Bank of India has imposed a monetary penalty of Rupees Five Lakh on The Nasik Merchants Co-operative Bank Ltd., Nashik in exercise of the powers vested in it under.
Nashik based UCB was faulted for violations of the directives, guidelines and instructions of the Reserve Bank of India relating to Know Your Customer (KYC) Norms, Anti-Money Laundering (AML) Measures, Combating of Financing of Terrorism (CFT) and Obligations of banks under Prevention of Money Laundering Act (PMLA) etc.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions thereon.
After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of penalty.