Dharmapuri District Central Co-operative Bank Ltd., Tamil Nadu penalized by Reserve Bank of India


The Reserve Bank of India has imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on Dharmapuri District Central Co-operative Bank Ltd., Tamil Nadu.

The penalty is for  non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.

District Central cooperative banks are primarily owned by State Governments.

The central co-operative banks are located at the district headquarters or some prominent town of the district. The central co-operative banks have three sources of funds,

  1. Their own share capital and reserves
  2. Deposits from the public and
  3. Loans from the state co-operative banks

Their main function is the banks are

  1. To meet the credit requirements of member-societies
  2. To perform banking business
  3. To act as balancing centre for the PACS by diverting the surplus funds of some societies to those which face shortage of funds
  4. To undertake non-credit activities
  5. To maintain close and continuous contact with PACS and provide leadership and guidance to them
  6. To supervise and inspect the PACS (Primary Agricultural Cooperative Banks)  and
  7. To provide a safe place for the investment of the resources of PACs

Dharmapuri District Central Co-operative Bank Ltd., depositors have the benefit of DICGC protection.

 

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