RBI imposes Monetary Penalty on Dausa Urban Co-operative Bank Limited, Dausa

Case Brief

The Reserve Bank of India penalized Dausa Urban Co-operative Bank Limited, Dausa under Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI found violations of its KYC/AML guidelines, including the absence of a system for risk categorization, fixing threshold limits, and putting in place software to generate alerts for identifying suspicious transactions. After a show cause notice, the bank’s reply, and a personal hearing, RBI concluded the breaches were substantiated and imposed a monetary penalty of ₹1 lakh.