RBI Penalises 13 Banks for FEMA Violation and KYC Lapses
Bank of Baroda and 12 other banks penalised for violation of FEMA norms.
The Reserve Bank of India has imposed Rs 27-crore penalty on 13 public and private sector banks, including Punjab National Bank Ltd. and HDFC Bank Ltd., for violation of Foreign Exchange Management Act and lapses in Know Your Customer norms.
The RBI also asked eight others including State Bank of India and ICICI Bank to ensure strict compliance with guidelines.
The central bank had undertaken a scrutiny on advance import remittances in 21 banks in October and November 2015 on the basis of inputs received from a public sector bank, the RBI said in a statement.
The penalised banks, according to the statement, include the following:
- Bank of Baroda: Rs 5 crore
- Allahabad Bank: Rs 2 crore
- Bank of India: Rs 1 crore
- Canara Bank: Rs 2 crore
- Corporation Bank: Rs 1 crore
- HDFC Bank: Rs 2crore
- IndusInd Bank: Rs 2 crore
- Punjab National Bank: Rs 3 crore
- RBL Bank: Rs 1 crore
- State Bank of Bikaner and Jaipur: Rs 2 crore
- State Bank of Mysore: Rs 1 crore
- Syndicate Bank: Rs 3 crore
- UCO Bank: Rs 2 crore
Eight other banks, including Axis bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, Union Bank of India and Oriental Bank of Commerce were on RBI’s radar. The central bank has advised them to put appropriate measures in place to ensure strict compliance with KYC norms and FEMA regulations.