The Reserve Bank of India (RBI) imposed Rs.1 crore penalty on private sector lender HDFC Bank for violating Know Your Customer (KYC) and Anti-Money Laundering (AML) norms.
a. HDFC Bank
b. RBL Bank
c. ICICI Bank
d. YES Bank
Details:
- RBI had received a reference from customs' authorities regarding submission of forged bill of entries (BoEs) by certain importers to the bank for remittance of foreign currency.
- RBI's examination revealed the violations of the RBI directions on KYC/AML norms and on reporting of frauds.
- RBI said that the penalties are based on deficiencies in regulatory compliance.
- Also, it is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with their customers.
- RBI said that a notice was issued to HDFC Bank on why monetary penalty should not be imposed for non-compliance with the directions.
- The fine was imposed on HDFC Bank after considering HDFC Bank's reply, oral submissions made during the personal hearing and additional submission made.
- RBI imposed the penalty in exercise of powers vested to it under the provisions of Section 47A(1)(c) with Section 46(4)(i) of the Banking Regulation Act, 1949.
Question:
Q. The Reserve Bank of India (RBI) imposed Rs.1 crore penalty on which private sector lender for violating Know Your Customer (KYC) and Anti-Money Laundering (AML) norms?a. HDFC Bank
b. RBL Bank
c. ICICI Bank
d. YES Bank
