Case Brief
The Reserve Bank of India imposed a penalty of Rs. 10 lakh on SBI Commercial and International Bank Ltd. under Section 47A(1)(b) of the Banking Regulation Act, 1949. The penalty was split into two Rs. 5 lakh violations: non-adherence to KYC norms while opening and operating IPO-related accounts, including failure to complete KYC for existing accounts, and failure of the bank's internal control systems to detect the lapses, along with furnishing wrong compliance to RBI despite advice to conduct an internal review of IPO funding.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- Bank
- Action Type
- Monetary penalty