16 CCBs fined 5L each by RBI for not meeting KYC norms and AML standardsBusiness News

April 02, 2015 10:02
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The Reserve Bank of India has imposed a monetary penalty of Rs 5.00 lakh (Rupees five lakh only) each on 16 Central Co-operative Banks on grounds of non-meeting the Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards. The Penalties have been imposed in exercise of powers vested in it under the provisions of Section 47(A) read with Section 46 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies).

The list of the Central Co-operative Banks is:

1.    The Dumka Central Co-operative Bank Ltd., Dumka (Jharkhand)
2.    The Gumla Simdega Central Co-operative Bank Ltd., (Jharkhand)
3.    The Dhanbad Central Co-operative Bank Ltd., (Jharkhand)
4.    The Rewari Central Co-operative Bank Ltd., Rewari (Haryana)
5.    The Mansa Central Co-operative Bank Ltd., Mansa (Punjab)
6.    The Jind Central Co-operative Bank Ltd., (Haryana)
7.    The Gopalganj Central Co-operative Bank Ltd., Gopalganj (Bihar)
8.    Ajmer Central Co-operative Bank Ltd., Ajmer (Rajasthan)
9.    Hanumangarh Kendriya Sahakari Bank Ltd., (Rajasthan)
10.    The Central Co-operative Bank Ltd., Bikaner (Rajasthan)
11.    The Sirohi Central Co-operative Bank Ltd., Sirohi (Rajasthan)
12.    The Bundi Central Co-operative Bank Ltd., Bundi (Rajasthan)
13.    The Boudh Co-operative Central Bank Ltd., (Odisha)
14.    Bhawanipatna Central Co-operative Bank, (Odisha)
15.    Cuttack Central Co-operative Bank Ltd., (Odisha)
16.    The Sambalpur District Co-operative Central Bank Ltd., (Odisha)

RBI has issued certain norms to banks for identifying and record keeping of the details of the customer, called Know Your Customer (KYC) and to avoid the money laundering incidents a provision called Anti-Money Laundering (AML) standards. The banking firms are bound to meet the standards for making transparent and non-corrupted money circulation.

“The Reserve Bank of India had issued a show cause notice to the banks in response to which the banks submitted a written reply. After considering the facts of the cases, the banks’ replies and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of the penalty.” RBI said in a statement.

-Kannamsai

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