The Reserve Bank has imposed Rs 1 crore penalty on Dhanlaxmi Bank for violation of Know Your Customer (KYC) and Anti Money Laundering (AML) norms.It had issued a Show Cause Notice to the bank for not complying with KYC and AML guidelines "in respect of a current account under investigation" of the Economic Offences Wing (EOW), Mumbai."The Reserve Bank of India has imposed a monetary penalty of Rs 10 million on Dhanlaxmi Bank Ltd for violation of its instructions, among other things, on KYC norms and AML standards," the central bank said in a statement.After considering the bank's reply, as also, personal submissions, information submitted and documents furnished, RBI came to the conclusion that the bank had violated the instructions/guidelines issued, from time to time, which warranted imposition of monetary penalty on it.RBI further said that "this action" is based on deficiencies in regulatory compliance and is "not intended" to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.