The Jain Sahakari Bank Ltd., Mumbai has been penalised (As per RBI reports)

By | September 13, 2011

A recent press report said that The Jain Sahakari Bank Ltd., Mumbai has been penalised by the Reserve Bank of India on compliance with Know Your Customers (KYC) norms/Anti Money Laundering (AML) guidelines.

The regulator has imposed a fine of Rs. 1 lakh on the Jain Sahakari Bank Limited, Mumbai, Maharashtra, in exercise of powers vested in it under the provisions of Section 47(A) (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 of Reserve Bank on compliance with Know Your Customers (KYC) norms/Anti Money Laundering (AML) guidelines.

Reports said that 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 bank’s reply in the matter and submission made during the personal hearing, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.

The RBI is the central banking institution of India and it controls the monetary policy of the rupee. The regulator has recently hiked key interest rates by 25 basis points, which is its 12th such hike since March, 2010. The hike has made auto, home and other loans more expensive.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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