RBI Fines 4 Banks For Violating KYC Norms

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.75 crore on four public sector banks, over non-compliance with KYC (know-your-customer) requirements and norms issued by it for opening of current accounts.

The central bank imposed a fine of Rs 50 lakh each on Punjab National Bank, Allahabad Bank and UCO Bank, while a penalty of Rs 25 lakh has been imposed on Corporation Bank.

In its notification, providing details on the penalty, the RBI said that they were imposed for non-compliance on certain provisions on directions issued by it on KYC norms or anti-money laundering standards and opening of current accounts.

"The action, however, 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," it added.