Mumbai: The Reserve Bank today said it has imposed a penalty of Rs 5 lakh each on two co-operative banks for violation of KYC and anti-money laundering norms.
The penalty of Rs 5 lakh has been imposed on Dharmapuri District Central Co-operative Bank Ltd, Tamil Nadu for non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.
A similar amount of penalty has also been imposed on National Central Co-operative Bank Ltd, Bettiah, Bihar for identical violations.
In both the cases, the RBI had issued show cause notices and the banks had submitted a written reply.
After considering the facts of the cases, the RBI said it came to the conclusion that the violation, in both cases, was substantiated and warranted imposition of the penalty.
The Reserve Bank also said the ‘Certificate of Registration’ of Manchanda Finlease Private Limited, Hyderabad for carrying on the business of a non-banking financial institution.
The company has voluntarily exited from carrying on NBFI activities, the RBI said in a release.
Following cancellation of the registration certificate Manchanda Finlease cannot transact the business of a non-banking financial institution, it added.