RBI Penalises 7 Banks, including HDFC Bank, IDBI, Kotak Mahindra, Allahabad Bank and Bank of Maharashtra for Non-compliance
Moneylife Digital Team 13 February 2019
The Reserve Bank of India (RBI) has imposed monetary penalty ranging from Rs20 lakh to Rs1.5 crore on seven banks including three private sector lenders and four public sector banks (PSBs) for non-compliance of its directions. 
 
RBI has levied a fine of Rs20 lakh each on HDFC Bank Ltd, IDBI Bank Ltd and Kotak Mahindra Bank Ltd for non-compliance with various directions issued by the central bank on know your customer (KYC) norms and anti-money laundering (AML) standards.
 
Three PSBs, Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank, are fined Rs1.5 crore each, while Andhra Bank will pay Rs1 crore as fine for non-compliance. These PSBs are penalised for non-compliance with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification and reporting of frauds and on restructuring of accounts.
 
However, RBI has clarified that its action is based on 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.
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