The Reserve Bank of India has imposed a monetary penalty of Rupees five lacs on the Aurangabad District Industrial and Urban Co-operative Bank Ltd, Aurangabad.
The apex bank found the urban cooperative bank violating the directives issued by it on issues of KYC, AML guidelines, non-introduction of Concurrent Audit System, submission of wrong, unsatisfactory and delayed compliance to RBI Inspection Report and concentration of Deposits.
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 facts of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.