The Reserve Bank of India has imposed a monetary penalty of Rs one lakh on the Dausa Urban Co-operative Bank Limited, Dausa.
The UCB was faulted for violations of the guidelines and directives on Know Your Customers (KYC) and Anti Money Laundering (AML) in respect of absence of system of risk categorization, fixation of threshold limits and putting in place appropriate software for generating alerts for identification of suspicious 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.