RBI Penalizes Four Gujarat Co-operative Banks for KYC/ AML Violations

Mumbai (ABC Live): The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on The Siddhi Co-operative Bank Ltd., Ahmedabad. The penalty was imposed for violation of RBI instructions/directions on Know Your Customer (KYC) / Anti Money Laundering (AML) and for submitting improper compliance of the observations made in its last inspection report.   The Reserve Bank had issued a show cause notice to The Siddhi Co-operative Bank Ltd.  The bank submitted a written reply in response to the Show Cause notice and after considering facts of the case, the bank's reply and personal submissions in the matter, the Reserve Bank concluded that the violations were substantiated and warranted imposition of penalty.  The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Shri Vinayak Sahakari Bank Ltd., Ahmedabad, Gujarat for violation of Reserve Bank of India instructions on unsecured advances, Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines, shortage in cash balances, opening of benami accounts and violation of Dos' and Donts' prescribed for board of directors. The Reserve Bank of India has imposed a monetary penalty of ` 1.00 lakh (Rupees one lakh only) on The Suvikas Co-operative Bank Ltd., Ahmedabad, Gujarat for violation of Reserve Bank of India instructions on Know Your Customers (KYC).  The Reserve Bank of India has imposed a monetary penalty of Rupees one lakh on The Botad People's Co-operative Bank Limited, Botad, Dist. Bhavnagar for violations of Reserve Bank of India instructions in respect of reporting of cash transactions above ` 10.00 lakh to Financial Intelligence Unit-India (FIU-IND), New Delhi, non compliance of Know Your Customers (KYC) norms and persistence of irregularities pointed in previous inspection report.