RBI fines Kolhapur Dist Central Coop Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5 lakh on Kolhapur District Central Co-operative Bank Ltd, Kolhapur, Maharashtra for violation of guidelines issued for Anti Money Laundering (AML).

The apex bank on Friday issued a statement stating that the RBI in exercise of powers vested in it under the provisions of section 46 read with section 47A of the banking regulation act, 1949 (AACS) had imposed a monetary penalty to the Kolhapur District Central Co-operative Bank.

In the letter issued today, the RBI observed that the cooperative bank had violated guidelines issued by the Reserve Bank on Know Your Customers (KYC) norms or AML standards.

The RBI had issued a show cause notice to the bank, in response to which the bank had submitted a written reply. "After considering the facts of the case, bank's reply and personal submissions in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty," the official statement said.