Breaking News

You are here » Indian-Commodity  :  Economy  :  RBI imposes Rs 27 crore penalty on 13 banks for violation of norms


RBI imposes Rs 27 crore penalty on 13 banks for violation of norms

The Reserve Bank of India (RBI) has imposed a penalty of Rs 27 crore on 13 banks for violating several norms such as know your customer (KYC) and anti-money laundering (AML). The RBI had undertaken a scrutiny on advance import remittances in 21 banks in October and November 2015 and came to the conclusion that 13 banks had violated AML and KYC norms under Foreign Exchange Management Act (FEMA). The banks are Allahabad Bank, Bank of India, Bank of Baroda, Canara Bank, Corporation Bank, HDFC Bank, IndusInd Bank, Punjab National Bank, RBL Bank, State Bank of Bikaner and Jaipur, State Bank of Mysore, Syndicate Bank and UCO Bank and the penalties to them range between Rs.1 crore and Rs.5 crore.

The RBI further advised eight other banks to put in place appropriate measures and review them from time to time to ensure strict compliance with KYC requirements and FEMA provisions on an ongoing basis. In October 2015, the Central Bureau of Investigation (CBI) conducted raids across bank branches, including those of Bank of Baroda and HDFC Bank, as part of a foreign exchange scam, where bank employees had allegedly liaised with certain people to illegally transfer funds to various accounts in Hong Kong and the UAE, flouting foreign exchange norms set by the central bank.

Related News

View all news

P-notes investment jumps to Rs 78,110 crore at March-end

With positive market sentiments, the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) jumped to Rs 78,110 crore at the end of March. According......

India's steel demand may grow above 7% in 2019, 2020: World Steel Association

The World Steel Association in its latest report 'Short Range Outlook April 2019' has said India's steel demand is likely to grow above 7 per cent in the current year (2019) as well as next year (2020).......

India likely to receive 'near normal' monsoon in 2019: IMD

Easing concerns over farm and economic growth in the country, the India Meteorological Department (IMD) in Long Range Forecast for 2019 southwest monsoon rainfall stated that the country is likely to have......

Top News

View all news

Lupin seeks more time from commerce ministry to complete project in Indore SEZ

Lupin has sought more time from the commerce ministry to complete its project, with proposed investment of Rs 205.69 crore, in the Indore Special Economic Zone (SEZ). The company is setting up its pharma......

Tata Sponge Iron to shift its registered office to Kolkata

Tata Sponge Iron has decided to shift its registered office from Keonjhar in Odisha to Kolkata, subject to the approval of the members of the company and other regulatory authorities. The company has also......

GVK Power's arms ink pact with ADIA, NIIF

GVK Power and Infrastructure's subsidiaries -- GVK Airports Developer (GVKADL) and GVK Airport Holdings (GVKAHL) have signed a term sheet and exclusivity agreement with Abu Dhabi Investment Authority (ADIA)......