Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 2 lakh on Jamia Cooperative Bank Ltd, 2/9, Surya Complex, Sarai Jullena, Okhla Road, New Delhi. RBI said the bank violated KYC and AML norms, including customer identification procedures, identifying the natural persons behind entities, enhanced due diligence, and risk categorisation. It also found non-compliance with IRAC norms through transfer of funds between accounts, involvement of directors in day-to-day affairs, and diversion of loan funds through borrower accounts to firms in which directors had an interest. The penalty was imposed under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 L
- Entity Type
- Co-operative bank
- Location
- New Delhi, Delhi