The Reserve Bank has imposed a penalty of Rs 5 lakh on Rajkot-based Jivan Commercial Cooperative Bank for violation of various rules, including anti-money laundering guidelines.

“RBI has imposed a monetary penalty of Rs 5 lakh on Jivan Commercial Cooperative Bank, Rajkot, for violating know-your customers (KYC) norms, guidelines on advances to builders and contractors against security of land, anti-money laundering guidelines, individual and group exposure ceiling…,” the apex bank said in a statement.

The cooperative sector lender was also found guilty of norms for unsecured financial guarantees and for constant irregularities pointed out in previous inspection report.

The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply.

“After considering the facts of the case… RBI came to the conclusion that the violations were substantiated and warranted imposition of the penalty,” it said.