RBI imposed a monetary penality on The Coimbatore Central Co-operative Bank Ltd

The Reserve Bank of India has imposed a monetary penalty of `5.00 lakh (Rupees five lakh only) on  The Coimbatore District Central Co-operative Bank Ltd., Tamil Nadu in exercise of powers vested  in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies), for non-adherence to Know Your Customers (KYC) norms  and Anti Money Laundering (AML) guidelines. 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, the bank's reply and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and  warranted imposition of the penalty.