MUMBAI: The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.75 crore on four public sector banks for non-compliance with KYC requirement and norms for opening of current accounts. While Punjab National Bank, Allahabad Bank and UCO Bank have been fined Rs 50 lakh each, Corporation Bank has been asked to pay Rs 25 lakh as a penalty.
The central bank said the penalties were imposed for non-compliance with certain provisions of directions issued by it on Know Your Customer (KYC) norms or anti-money laundering (AML) standards and opening of current accounts.
"The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act 1949, taking into account the failure of the banks to adhere to the aforesaid directions," said the RBI in a statement.
"This 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," it said.