New Delhi: The Reserve Bank of India (RBI) has penalised four public sector banks for violating Know Your Customer (KYC) norms and anti-money laundering standards. The penalties range between Rs 25-50 lakhs, an official statement released by the RBI on Tuesday said.
While Punjab National Bank, Allahabad Bank, and UCO Bank have been directed to pay a fine of Rs 50 lakh each, Corporation Bank has been fined Rs 25 lakh.
"Based on the findings, Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions," the RBI said. The Central bank had found irregularities in current accounts opened by these banks and had looked into the matter after receiving a complaint.
The RBI also added that the action is based on the deficiencies in regulatory compliance and does not intend to pass a judgment on the validity of any transaction or agreement entered into by the banks with their customers.