RBI imposes penalty on Integral Urban Co-operative Bank Limited, Jaipur

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹20.00 lakh on Integral Urban Co-operative Bank Limited, Jaipur under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had violated KYC/AML guidelines/directives, including failure to generate CTR/STR alert reports, lack of a risk-categorization and threshold-limit system, non-reporting of cash transactions to FIU-IND (including director-related accounts), and inadequate monitoring of cash transactions. After a show-cause notice, written reply, and personal hearing, RBI concluded the violations were substantiated and imposed the penalty.