Tag Archives: Anti-money laundering

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.

 

RBI penalises The Kakinada District Co-operative Central Bank Ltd., Andhra Pradesh

 

As The Kakinada District Co-op Central Bank, violated RBI guidelines on Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines, RBI imposed a monetary penalty of Rs5.00 lacs(Rupees five lacs only) on the said bank.

Kakinada is nicknamed as “Fertilizer City” (owing to the large concentration of fertiliser plants), “Pensioner’s Paradise” and “Second Madras”.

Kakinada is part of a Special Economic Zone and a proposed “Petroleum, Chemical and Petrochemical Investment Region (PCPIR)”. It is a hub to all the deep sea exploratory activity in the region due to its deep-water sea port and its proximity to the gas fields.

The area is famous for its mouth-watering sweet Kakinada Khaza.

 

RBI Penalises Siwan Central Co-operative Bank Ltd., Siwan

As Siwan Central Co-operative Bank Ltd., Siwan, did not adhere to RBI’s guidelines on to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines, Reserve Bank of India imposed a monetary penalty of Rs5.00 lakh (Rupees five lakh only) on the Bank.

Siwan is a district located in Bihar. The most prominent citizen from Siwan is Dr. Rajendra Prasad, the first president of India. Dr. Rajendra Prasad hailed from  Jiradeyi village, 8 km west of Siwan town.

Reserve Bank of India penalizes The Gandhidham Mercantile Cooperative Bank Ltd., Dist. Kutch (Gujarat)

 

The Reserve Bank of India has imposed a monetary penalty of Rs 5 lakh (Rupees Five Lakh only) on The Gandhidham Mercantile Cooperative Bank Ltd, Dist. Kutch (Gujarat).

 

The penalty was for :-

 

    • violation of guidelines of the Reserve Bank on disclosure of monetary penalty in public domain,
    • lending for purchase of land for construction of commercial property,
    • non-compliance to KYC (Know Your Customer) norms,
    • non-adherence to AML (Anti Money Laundering)  guidelines
    • allowing intra-day overdrawals in several accounts. What are intra-day overdrawals? Under intraday withdrawls, debit in excess of available credit balance is allowed, without any credit appraisal.