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.