{"id":603,"date":"2014-12-17T00:00:00","date_gmt":"2014-12-16T18:30:00","guid":{"rendered":""},"modified":"2015-12-31T16:29:14","modified_gmt":"2015-12-31T10:59:14","slug":"rbi-imposes-monetary-penalty-on-icici-bank-and-bank-of-baroda-for-violating-kyc-aml-instructions","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/banking\/rbi-imposes-monetary-penalty-on-icici-bank-and-bank-of-baroda-for-violating-kyc-aml-instructions\/","title":{"rendered":"RBI imposes monetary penalty on ICICI Bank and Bank of Baroda for violating KYC\/AML Instructions"},"content":{"rendered":"

The Reserve Bank of India has imposed monetary penalty on the following two banks for violation of its instructions, among other things, on know your customer\/anti money laundering Know Your Customer(KYC)\/Anti Money Laundering (AML). The details of the penalty are:<\/p>\n\n\n\n\n\n
\n

Sl. No.<\/strong><\/p>\n<\/td>\n

\n

Name of the bank<\/strong><\/p>\n<\/td>\n

\n

Penalty Amount (in Rs.)<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

1<\/p>\n<\/td>\n

ICICI Bank Ltd.<\/td>\n\n

5.00<\/p>\n<\/td>\n<\/tr>\n

\n

2<\/p>\n<\/td>\n

\n

Bank of Baroda<\/p>\n<\/td>\n

\n

2.50<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A)(1)( c ) read with Section 46(4)(i) of the Banking Regulation Act, 1949.<\/p>\n

Background<\/strong><\/p>\n

The Reserve Bank of India (RBI) received a complaint from a reputed statutory organisation in August, 2013 through which the details of a fraud perpetrated in five banks, namely, State Bank of India, ICICI Bank Ltd., Bank of Baroda, Axis Bank Ltd. and State Bank of Patiala, with the connivance of certain officials of the statutory organisation were brought to the Reserve Bank\u2019s notice. The fraudsters had managed to open fictitious accounts in the name of the statutory organisation in the above five banks and operated the accounts mainly for encashing cheques\/demand drafts\/postal orders of which they were not the rightful owners, for periods ranging from one month to two years, without being detected by the banks.<\/p>\n

A scrutiny was undertaken in the above five banks in January, 2014 to ascertain the adherence to extant regulatory instructions by banks in the instant case. The findings of the scrutiny revealed violation of certain regulatory guidelines issued by the Reserve Bank, namely:<\/p>\n