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RBI penalises 22 banks for violating KYC norms

Jul 15, 2013 at 02:29pm IST

New Delhi: The Reserve Bank of India on Monday penalised 22 banks for violating Know Your Customer norms and imposed penalties ranging from Rs 50 lakh to Rs 3 crore. The RBI has absolved them of money laundering charge saying there is no prima facie evidence against them.

The RBI has imposed Rs 3 crore fine on State Bank of India, Bank of Baroda, Canara Bank, IOB and Bank of India. Rs 2.5 crore fine has been imposed on Andhra Bank, Punjab & Sind Bank, Punjab National Bank.

The RBI has issued cautionary letters to seven more banks following scrutiny- Barclays Bank, BNP Paribas, Citibank, Royal Bank of Scotland, StanChart Bank.

The scrutiny was followed by a cobrapost investigation which alleged money laundering by banks.

The RBI had carried out a study of books of accounts and compliance systems of banks in April 2013 which revealed many didn't adhere to know-your-customer rules, including those related to cash transactions, sale of gold coins and import of gold coins on consignment basis.

(With additional inputs from Reuters)


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