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Last Updated : Jul 03, 2019 01:17 PM IST | Source: Moneycontrol.com

RBI imposes fine on four public sector banks for violating KYC norms

The banking regulator found irregularities in current accounts opened by these banks after receiving a complaint.

Moneycontrol News @moneycontrolcom

The Reserve Bank of India (RBI) has imposed penalties ranging between Rs 25-50 lakhs on four state-run lenders for violating Know Your Customer (KYC) norms and anti-money laundering standards.


Punjab National Bank, Allahabad Bank, and UCO Bank were fined Rs 50 lakh each while Corporation Bank was fined Rs 25 lakh.


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 July 2.


RBI added that 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.



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First Published on Jul 2, 2019 08:48 pm
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