The Reserve Bank of India (RBI) has imposed a fine of Rs 2 lakh on Jamia Cooperative Bank for violation of regulatory norms, including anti money laundering regulations.
The penalty has been imposed on the city-based bank for violation of know your customer (KYC) and anti money laundering (AML) norms, the apex bank said in a statement on Wednesday.
The bank failed to ascertain identification of persons behind entities, carry out enhanced due diligence and appropriate risk categorisation and involvement of the directors in day-to-day affairs of the bank, the statement said.
Jamia Cooperative Bank was found guilty of diversion of funds from loan accounts through current or savings bank accounts of borrowers to firms in which directors have an interest, the statement added.
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