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Mumbai : The Reserve Bank of India has imposed monetary penalty on 22 banks for violation of its instructions, among other things, on Know Your Customer/Anti Money Laundering.
Penalty has been imposed on Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Deutsche Bank A.G., Development Credit Bank Ltd., Dhanlaxmi Bank Ltd.,Indian Overseas Bank, ING Vysya Bank Ltd., Jammu & Kashmir Bank Ltd., Kotak Mahindra Bank Ltd., Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, State Bank of India, The Federal Bank Ltd., The Lakshmi Vilas Bank Ltd., The Ratnakar Bank Ltd., United Bank of India, Vijaya Bank, Yes Bank Ltd. Penalty varies from 0.50 crore to 3.002 crore each total penalty imposed is Rs. 49.50 crore.
In respect of seven other banks, where such scrutinies have been conducted and banks explanation called for, the banks written or oral submissions were found to be satisfactory or no violation of serious nature has been established. It has, therefore, been decided not to impose any monetary penalty but to issue only suitable cautionary letters, said RBI in its release.
cautionary letters were issued to Barclays Bank PLC, BNP Paribas, Citibank N.A., Royal Bank of Scotland, Standard Chartered Bank, State Bank of Patiala, The Bank of Tokyo Mitsubishi UFJ Ltd.
A similar scrutiny was also conducted in seven other banks during April and May 2013. The process of follow up action in respect of those banks is at different stages of its completion.
The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A)(1)( c ) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
[RBI]