RBI penalises ICICI Bank, Axis Bank and HDFC Bank for violating KYC norms

The Reserve Bank of India (RBI) has imposed penalties on Axis Bank, HDFC Bank and ICICI Bank for violating guidelines related to “know your customer” (KYC) rules. The RBI has imposed a penalty of Rs5 crore on Axis Bank, Rs4.5 crore on HDFC Bank and Rs1 crore on ICICI Bank.During March and April 2013, RBI said it investigated scrutiny of accounts, compliance systems, internal control and processes of these banks from the private sector at their corporate offices and braches. The investigation revealed violation of certain regulations and instructions including :- non-observance of certain safeguards in respect of arrangement of “at par” payment of cheques drawn by cooperative banks. non-adherence to certain aspects of know your customer (KYC) norms and anti-money laundering (AML) guidelines like risk categorisation and periodical review of risk profiling of account holders. Non-adherence of KYC for walk-in customers including for sale of third party products, omission in filing of cash transaction reports (CTRs) in respect of some cash transactions, sale of gold coins for cash beyond Rs50,000. Not obtaining of permanent account number (PAN) card details or form 60/61 as required.
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