RBI slaps Rs1.75 cr fine on 4 PSU banks for violation of KYC norms
03 Jul 2019
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Reserve Bank of India (RBI) has imposed a penalty of Rs1.75 crore on four public sector banks, including Punjab National Bank, Allahabad Bank, UCO Bank and Corporation bank, for non-compliance with KYC norms for opening of current accounts.
Punjab National Bank, Allahabad Bank and UCO Bank have been fined Rs50 lakh each, while Corporation bank has been slapped with a penalty of Rs25 lakh.
RBI said the action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
The penalty has been imposed for non-compliance with certain provisions of directions issued by it on Know Your Customer norms or anti-money laundering standards and opening of current accounts, it added.
The banking regulator found irregularities in current accounts opened by these banks after receiving a complaint.
“Based on the findings, notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions,” the RBI said on Tuesday.
