RBI imposed a fine of 1.5 crore rupees each on three Public Sector Banks for violating KYC norms

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Reserve Bank of India imposed a fine of 1.5 crore rupees each on three Public Sector Banks (PSBs) for violating Know Your Customer (KYC)/Anti Money Laundering (AML) norms. These bank names are Bank of Maharashtra, Dena Bank and Oriental Bank of Commerce.

It under the provisions of Section 47(A) (1) of the Banking Regulation Act, 1949, RBI have been imposed the penalties which instructions issued by the RBI from time to time. According to the Banking Regulation Act, 1949, RBI findings revealed violation of certain regulatory guidelines issued by the RBI as under:

  • Non-adherence to certain aspects of KYC norms of the Reserve Bank like customer identification and acceptance procedure
  • Non-adherence to the Reserve Bank’s instructions on monitoring of transactions in customer accounts
  • Non-adherence to the Reserve Bank’s instructions regarding funds received through Real Time Gross Settlement System (RTGS)

RBI decided not to impose any monetary penalty on the above said eight banks as the banks’ explanations were judged to be reasonable. Besides, it cautioned eight other banks, namely Central Bank of India, Bank of India, Punjab and Sind Bank, Punjab National Bank, State Bank of Bikaner & Jaipur, UCO Bank, Union Bank of India and Vijaya Bank.

- Published/Last Modified on: May 1, 2015