Press Esc to close

RBI penalises 22 banks for flouting KYC regulations

New Delhi, Jul 15, 2013, DHNS 23:54 IST
22 banks fined for violating KYC/anti-money laundering norms. File Reuters Image
The Reserve Bank of India (RBI) on Monday slapped fines on 22 private and public sector banks including State Bank of India, Punjab National Bank and Yes Bank for violating KYC/anti-money laundering (ALM) norms consequent to its investigation.

Further, RBI warned seven more banks including Citibank and Stanchart by issuing cautionary letters.

In all, the apex bank levied fines up to Rs 49.5 crore. “After considering the facts of each case...Reserve Bank came to conclusion that some of the violations were substantiated and warranted imposition of monetary penalty...” said RBI in a statement.

A penalty of Rs 3 crore each has been imposed on State Bank of India (SBI), Bank of India, Canara Bank, Bank of Baroda, Central Bank of India, Indian Overseas Bank and Federal Bank.

United Bank of India, Lakshmi Vilas Bank, Punjab National Bank, Jammu & Kashmir Bank and Andhra Bank were slapped a penalty of Rs 2.5 crore each.

A penalty of Rs 2 crore each was imposed on Yes Bank, Vijaya Bank, Oriental Bank of Commerce and Dhanlaxmi Bank. Other banks penalised include Deutsche Bank, Development Credit Bank, ING Vysya Bank, Kotak Mahindra Bank and Ratnakar Bank.
Following probe into charges levelled by an online portal Cobrapost, RBI has earlier imposed fines totalling Rs 10.5 crore on three private lenders - Axis Bank, HDFC Bank and ICICI Bank.

Although the investigation did not reveal any prima facie evidence of money laundering, RBI said that “any conclusive inference in this regard can be drawn only by an end-to-end investigation of the transactions by tax and enforcement agencies.”

It may be noted that the minimum amount of fine imposed by RBI was at Rs 50 lakh on Ratnakar Bank while the Indian Overseas Bank will have the maximum amount of Rs 3.002 crore. And Deutsche Bank -- who was levied a fine of Rs 1 crore -- is the only foreign lender to have appeared in the list of 22 banks.

Apart from Citibank and Standard Chartered Bank, RBI issued cautionary letters to Barclays Bank, BNP Paribas, Royal Bank of Scotland, Bank of Tokyo Mitsubishi and State Bank of Patiala. In this context, RBI maintained: “..... where scrutinies have been conducted and banks’ explanation..... were found to be satisfactory or no violation of serious nature has been established. It has, therefore, been decided not to impose any monetary penalty but to issue only suitable cautionary letters."

Go to Top

More from this section
Most trending stories
Photo Gallery
Artists perform a folk dance during the inaugural ceremony of 48th edition of the IFFI...

Artists perform a folk dance during the inaugural ceremony of 48th edition of the IFFI...

Brides sit for a mass marriage ceremony organized for 12 Muslim couples at Mazgaon...

Brides sit for a mass marriage ceremony organized for 12 Muslim couples at Mazgaon...

Artists perform dance on the occasion of Haryana State Day...

Artists perform dance on the occasion of Haryana State Day...

A farmer pulls a cart rickshaw carrying cauliflower vegetables....

A farmer pulls a cart rickshaw carrying cauliflower vegetables....

Mohd Shami celebrats after after dismissing Sri Lankan captain Dinesh Chandimal...

Mohd Shami celebrats after after dismissing Sri Lankan captain Dinesh Chandimal...

Four lakhs of laddoos being prepared for 31st anniversary celebrations of Sai Baba Temple....

Four lakhs of laddoos being prepared for 31st anniversary celebrations of Sai Baba Temple....

Shah Rukh Khan performs during the inaugural ceremony of 48th edition of the IFFI...

Shah Rukh Khan performs during the inaugural ceremony of 48th edition of the IFFI...

Rahul Gandhi consoles Dipa, the wife of Congress leader Priya Ranjan Dasmunsi....

Rahul Gandhi consoles Dipa, the wife of Congress leader Priya Ranjan Dasmunsi....

Aishwarya Rai Bachchan with her daughter Aaradhya during a charity event...

Aishwarya Rai Bachchan with her daughter Aaradhya during a charity event...

Deepika Padukone with child artists at the promotion of film Padmavati...

Deepika Padukone with child artists at the promotion of film Padmavati...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.