The Reserve Bank of India (RBI) today imposed a penalty of Rs 5 lakh on private sector lender ICICI Bank for violating Know-Your Customer (KYC) norms, and the same amount on Standard Chartered Bank for not providing information on time about its foreign currency loan facility.
"The RBI has imposed a penalty of Rs 5 lakh on ICICI Bank... For violation of the guidelines on Know Your Customer (KYC)/Anti Money Laundering (AML) standards," the central bank said in a statement.
On Standard Chartered Bank, the RBI said the lender did not furnish, within stipulated time, information to the central bank about a foreign currency loan facility it arranged for an offshore special purpose vehicle.
Earlier, the RBI had issued show cause notices to the both the banks in response to which they had submitted written replies.
The RBI said that on careful examination of the banks' replies and the oral submissions made by them, it was found that the violations were "conclusively established" and the penalties accordingly imposed.
Reactions from both the banks on the RBI action were awaited.
