The Reserve Bank of India has imposed a monetary penalty of Rs one lakh on the Khargone Nagrik Sahakari Bank Maryadit, Khargone in exercise of powers vested in it.
RBI faulted the UCB for the violation of its directives and guidelines on implementation of Know Your Customers (KYC), Anti Money Laundering (AML) norms, submission of proper compliance on time and granting donations.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply.
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 the monetary penalty.