RBI imposes penalty on Mumbai District Central Co-operative Bank Ltd., Mumbai, Maharashtra

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January 3, 2017

The Reserve Bank of India has imposed a monetary penalty of ₹ 1.00 lakh (₹ One Lakh only) on Mumbai District Central Co-operative bank Ltd., Mumbai, Maharashtra in exercise of the powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violations, of the directives/ guidelines/ instructions of the Reserve bank of India relating to Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) measures.

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 submission 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.