RBI has penalized 13 public sector and private banks for violation of KYC norms. Reserve Bank of India has imposed 27 crore penalty on 13 banks. Beside, Banks like State Bank of India, ICICI, Axis Bank and Standard Chartered Bank have been asked to strictly comply with KYC norms.
Earlier, Bank of Baroda was fined 5 crore rupees for irregularities in AML provisions. RBI imposed this fine for alleged Rs 6,000-crore forex related irregularities.
RBI imposed monetary penalty on 13 PSU and Private Banks
The 13 banks which have been penalized includes Allahabad Bank, BoI, Bank of Baroda, Canara Bank, Corporation Bank, HDFC Bank, IndusInd Bank, PNB, RBL Bank, SBBJ, State Bank of Mysore, Syndicate Bank and UCO Bank.
Penalty amount ranges from 1 crore to 5 crore.
8 banks asked to strictly comply with KYC norms and FEMA provisions
8 other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, Oriental Bank of Commerce, Standard Chartered Bank, State Bank of India and Union Bank of India have been asked to strictly comply with KYC norms and FEMA provision and also review them time to time.
Central Bank of India conducted critical investigation on advance import remittances in 21 banks in October and November last year.
In the investigation, Central bank found irregularities in account openings , monitoring including FEMA provisions violations.
RBI issued show cause notice and sought responses from all banks.
After response from banks, information and documents submitted , RBI came to conclusion that some of violations of serious nature confirmed and penalty of rupees 27 crore imposed on banks.