RBI penalises 13 Banks for violating KYC Norms- (Reserve Bank of India) (27 Jul 2016)

MANU/RPRL/0184/2016

Banking

The Reserve Bank of India has imposed monetary penalty on the following banks for violation of regulatory directions / instructions / guidelines, among other things, on KYC norms. The details of the penalty are:

S. No.	Name of the bank	Penalty Amount (in `million)
1.	Allahabad Bank	20
2.	Bank of India	10
3.	Bank of Baroda	50
4.	Canara Bank	20
5.	Corporation Bank	10
6.	HDFC Bank	20
7.	IndusInd Bank	20
8.	Punjab National Bank	30
9.	RBL Bank	10
10.	SBBJ	20
11.	SBM	10
12.	Syndicate Bank	30
13.	UCO Bank	20

Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements and FEMA provisions on an ongoing basis.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time. 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.

Tags : KYC NORMS VIOLATION PENALTY