RBI imposes Rs. 27 crore penalty on 13 banks

Posted on:29 Jul 2016 09:34:13
RBI imposes Rs. 27 crore penalty on 13 banks
29 July 2016 Current Affairs: The Reserve Bank of India has come down hard on 13 banks and fined them for Rs 27 crore for violation of FEMA and lapses in know your client (KYC) rules. 

The matter relates to irregularities in import remittances by several banks which came to light in October 2015. On the basis of inputs received from a public sector bank, the Reserve Bank undertook a scrutiny on advance import remittances in 21 banks in October/November 2015 .

The RBI fined Bank of Baroda for Rs 5 crore, Punjab National Bank and Syndicate Bank have been fined Rs 3 crore each. UCO Bank, HDFC Bank, Allahabad Bank, Canara Bank and IndusInd Bank have all been fined Rs 2 crore each. 

While the regulator did not impose any fine on SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Union Bank of India, among others, it advised these banks to ensure strict compliance of KYC (know your customer) requirements and FEMA provisions on an ongoing basis. 

The regulator said its actions were based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers. 

RBI started an inspection of banks after Rs 6,100-crore import remittances were effected by Bank of Baroda's Ashok Vihar branch in New Delhi. This, after late last year, CBI conducted search and seizure operations across multiple bank branches of HDFC Bank and Bank of Baroda in relation to irregularities in advance import remittances in various banks. 

Both CBI and the Enforcement Directorate are currently probing the huge remittances to Hong Kong from the bank. The amount was allegedly transferred in the garb of payments for imports that never took place, investigators suspect. 

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs November 2017

20 NOVEMBER
NEWS
19 NOVEMBER
NEWS
18 NOVEMBER
NEWS
17 NOVEMBER
NEWS

Current Affairs October 2017

31 OCTOBER
NEWS
30 OCTOBER
NEWS
29 OCTOBER
NEWS
28 OCTOBER
NEWS

Current Affairs September 2017

30 SEPTEMBER
NEWS
28 SEPTEMBER
NEWS
27 SEPTEMBER
NEWS
26 SEPTEMBER
NEWS