The Reserve Bank of India (RBI) has penalised 22 banks adding up to US $8.335 Million (Rupees 495 Million) for violating its instructions on customer identity detail and anti-money laundering guidelines.
The list includes India’s largest lender the State Bank of India, Bank of India, Canara Bank, Bank of Baroda, Central Bank of India, Deutsche Bank AG, Punjab National Bank, Federal Bank Limited and Yes Bank Limited.
The maximum fine of $502,212 (INR 30.02 Million) was slapped on Indian Overseas Bank. Canara Bank came next with $505,262 (INR 30.01 Million).
The RBI found non-adherence to norms at these banks in a scrutiny of their books of accounts and internal control and compliance systems in April 2013.
In a press release, the RBI’s Chief General Manager Alpana Killawala said, “The violations included non-adherence to instructions on the upper limit for remittances under Liberalised Remittance Scheme, upper limit for repatriation of funds from non resident ordinary (NRO) accounts and non-adherence to instructions on import of gold on consignment basis.”
The Mumbai-based federal banking regulator let off seven other banks which gave satisfactory written or oral submission with cautionary letters, she said.
The seven banks are Barclays Bank PLC, BNP Paribas, Citibank N.A, Royal Bank of Scotland, Standard Chartered Bank, State Bank of Patiala and The Bank of Tokyo Mitsubishi UFJ Ltd.
The federal bank had launched a massive investigation following money laundering charges levelled by an online portal initially against Axis Bank, HDFC Bank and ICICI Bank and extended to many others later.