Country’s largest private lender ICICI Bank and Bangalore based ING Vysya Bank were penalised by the Reserve Bank of India today for violating Know Your Customer (KYC) norms.
Penalty of Rs 30 lakh was imposed on ICICI Bank and Rs 55 lakh on ING Vysya Bank.
The penalties have been imposed on these banks for contravention of various directions and instructions issued by the RBI on KYC norms/Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Prevention of Money Laundering Act, 2002, RBI said in a statement.
Central bank in its order further said, these banks failed to obtain adequate documents for opening accounts, to carry out sufficient customer identification procedures, to ascertain the identification of natural persons behind entities and delay in filing the suspicious transaction reports.”
RBI has imposed these penalties after a show cause notice served to banks and studying their responses in form of written replies and oral submissions to RBI.
