The Reserve Bank of India (RBI) has fined four public sector banks including PNB and UCO Bank Rs 1.75 crore for not complying with the Know Your Customer (KYC) norms and rules for opening current accounts. The penalty is being levied on Punjab National Bank (PNB), Allahabad Bank, UCO Bank and Corporation Bank. While, PNB, Allahabad Bank, and UCO Bank have been penalised for an amount of Rs 50 lakh each, the Corporation Bank was asked to pay Rs 25 lakh.
Giving details, the RBI said the penalty has been imposed for non-compliance with certain provisions of directions issued by it on know your customer norms or anti-money laundering standards and opening of current accounts. The action, however, is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers, the RBI added.
Also Read: RBI imposes Rs 2 crore fine on PNB for flouting SWIFT rules
The Central Bank found irregularities in current accounts opened by these banks after it received a complaint of the wrongdoing.
"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 apex band had said on Tuesday.
Also Read: RBI imposes penalty on seven banks for violation of norms
In a stock exchange filing on Tuesday, UCO Bank said, "We inform that the RBI in exercise of powers conferred under Section 47 (A) (1) (c) read with Section section 51 and 46 (4) (1) of the Banking Regulation Act, 1949, has imposed a penalty of Rs 5 million (Rs 50 lakh) on UCO Bank for non-compliance of RBI directives on 'KYC norms/AML standards/CFT/obligation of banks and financial institutions under PMLA 2002' and also on 'opening of current accounts by banks - need for discipline'."
Likewise, the Allahabad Bank, in its stock exchange filing also said that the RBI has fined the Bank a penalty of Rs 50 lakh for not complying with the directives issued by RBI on KYC norms/AML Standards and Opening of Current Accounts.
Also Read: RBI imposes penalty of Rs 3.5 crore on Allahabad Bank, Corp Bank for violating norms
Also Read: RBI slaps Rs 1 crore fine on HDFC Bank for non-compliance of KYC norms
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