The Reserve Bank of India has imposed a monetary penalty of Rupees twenty lakh on the Integral Urban Co-operative Bank based in Jaipur, Rajasthan.
The UCB was found defaulting on the guidelines and directives on Know Your Customers (KYC). It was also found that the urban cooperative bank was violating norms of Anti Money Laundering.
In particular it was found that (i) Absence of facility for generating alert report for Cash Transaction Report (CTR)/Suspicious Transaction Report (STR);
(ii) No system of risk categorization and fixation of threshold limits;
(iii) Non reporting of cash transactions to Financial Intelligence Unit-India (FIU-IND) including director related accounts and
(iv) Non monitoring of cash transactions.
The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply and also made personal hearing.
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 monetary penalty. Accordingly, it has penalized the bank, reads a RBI release.