Reserve Bank of India (RBI) slaps Rs 6.5-cr penalty on 6 public sector banks for violating KYC norms.
The Reserve Bank of India (RBI) penalized six public sector banks of Rs 6.5 crore for violating Know Your Customer (KYC)/Anti Money Laundering (AML) guidelines of the central bank.
The six banks fined were Dena Bank (Rs 2 crore), Corporation Bank (Rs 1.5 crore), IDBI Bank and Indian Bank (Rs 1 crore each), Bank of Maharashtra and Allahabad Bank fined Rs 50 lakh each, according to a press release of RBI.
In respect of IndusInd Bank where such scrutiny has been conducted and the bank’s reply was found to be satisfactory or no violation of serious nature has been established …and only issue a cautionary letter, RBI said.
In addition, banks were charged with violations relating to acceptance of cash above Rs 50,000 from customers for sale of gold coins and issue of Demand Drafts etc, non-adherence to instructions on import of gold on consignment basis and credit permits to Non-resident accounts among others.