The Reserve Bank of India on 23 August 2013 imposed monetary penalty of 6 crore 50 lakh rupees on six banks for violation of the Know Your Customer (KYC)/Anti Money Laundering guidelines.
Details of Penalty issued:
| Sl. No. | Name of the bank | Penalty Amount (in ` Crore) |
| 1 | Allahabad Bank | 0.50 |
| 2 | Bank of Maharashtra | 0.501 |
| 3 | Corporation Bank | 1.50 |
| 4 | Dena Bank | 2.00 |
| 5 | IDBI Bank Ltd. | 1.00 |
| 6 | Indian Bank | 1.00 |
The RBI has imposed penalties 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.
Background
The Reserve Bank of India carried out a scrutiny of books of accounts, internal control, compliance systems and processes of these banks at their offices during April and May 2013. The scrutiny of these banks revealed violation of certain regulations and instructions issued by Reserve Bank of India, namely,
• Non-adherence to certain aspects of Know Your Customer (KYC) norms and Anti Money Laundering (AML) guidelines like customer identification procedure, risk categorisation, periodical review of risk profiling of account holders and periodical KYC updation
• Non-adherence of KYC norms for walk in customers including for sale of third party products, omission in filing of cash transaction reports (CTRs) in respect of some cash transactions
• Non-adherence to instructions on monitoring of transactions in customer accounts including walk-in-customers
• Non-adherence to instructions which prohibit acceptance of cash above 50000 from customers for sale of gold coins and issue of Demand Drafts etc
• Non-adherence to instructions on import of gold on consignment basis
• Non-adherence to instructions on permitted credits to Non-resident accounts
The Apex Bank has however clarified that till now there is no prima facie evidence of money laundering.
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