RBI penalises BoB, HDFC for violations

Mumbai, July 25 

The Reserve Bank of India has imposed a penalty of Rs 2 crore on HDFC Bank for lapses in adhering to Know Your Customer (KYC) and anti-money laundering (AML) norms.

The RBI has also slapped a fine of Rs 5 crore on Bank of Baroda (BoB) over Rs 6,100-crore scandal exposed last year.

Further to the media reports in October 2015 about irregularities in advance import remittances in various banks, the RBI had conducted a scrutiny of the transactions carried out by HDFC bank, the country’s second largest private sector lender said in a regulatory filing today.

The RBI issued a show-cause notice to which the bank submitted its detailed response.

“After considering the bank’s submissions, the RBI has imposed a penalty of Rs 20 million on the bank on account of pendency in receipt of bills of entry relating to advance import remittances made and lapses in adhering to KYC/AML guidelines in this respect,” it said. PTI