Syndicate Bank has emerged as the latest entrant on the Reserve Bank ofIndia's hit list for violation of norms.
The central bank
on December 12 imposed a monetary penalty of Rs 5 crore on the public sector
lender for violating the Know Your Customer (KYC)/Anti-Money Laundering
(AML) norms.
This comes on
the heels of RBI fining private sector lender IndusInd Bank Rs 2
crore for non-compliance of asset recognition norms.
The banking
regulator has exercised these powers vested with it under the provisions of the
Banking Regulation Act.
"A scrutiny was
conducted by RBI of certain branches of the bank in the aftermath of a fraud
reported in these branches. Based on the findings of the scrutiny and
examination of related documents obtained in this regard, a Notice was issued
to the bank advising it to show cause as to why penalty should not be imposed
for non-compliance with directions/guidelines issued by RBI," RBI said in
its statement on its website.
After considering the
bank’s reply and oral submissions made in the personal hearing, RBI came to the
conclusion that the aforesaid charges of non-compliance with RBI directions/guidelines
were substantiated and warranted imposition of monetary penalty, it added.
Earlier, RBI had
penalised Union Bank of India Rs 2 crore for non-compliance of KYC norms.
In October, Yes Bank
was fined Rs 6 crore for non-compliance of asset disclosures and security
breach disclosure rules while IDFC Bank was fined Rs 2 crore not adhering
to the loans and advances norms.
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