FEMA Violations – RBI levies Rs 27 crore penalty on 13 banks

Taking its feet on gross violation of FEMA guidelines and KYC norms, RBI has imposed Rs 27-crore penalty on 13 public and private sector banks, which includes PNB and HDFC Bank.  However, eight other banks including SBI and ICICI Bank have been advised to ensure strict compliance with guidelines. A public sector bank reports, that, the Reserve Bank had undertaken a scrutiny on advance import remittances in 21 banks in October and November 2015. In a statement released, the RBI stated that it has implicated 13 banks for “violation of regulatory directions/instructions/guidelines, among other things, on KYC norms” by imposing penalty.  The banks penalised are:

Sl.No Name of the Bank   Amount in Crores (INR)
1. BANK OF BARODA 5.00
2. PUNJAB NATIONAL BANK 3.00
3. SYNDICATE BANK 3.00
4. UCO BANK 2.00
5. HDFC BANK 2.00
6. ALLAHABAD BANK 2.00
7. CANARA BANK 2.00
8. INDUSIND BANK 2.00
9. SBBJ 2.00
10. BANK OF INDIA 1.00
11. CORPORATION BANK 1.00
12. RBL BANK 1.00
13. STATE BANK OF MYSORE 1.00

The eight other banks who are advised to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC norms and FEM guidelines on a regular basis are— Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India.

Author: Admin Bankedge

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