Case Brief
The Reserve Bank imposed penalties on Axis Bank Ltd., HDFC Bank Ltd. and ICICI Bank Ltd. after scrutinising their books, internal controls and compliance systems and finding multiple violations of RBI regulations and instructions. The breaches included KYC/AML shortcomings, non-observance of safeguards for 'at par' cheque payment arrangements with cooperative banks, lapses in risk categorisation and periodic review of account-holder risk profiles, missing CTR filings, PAN/Form 60/61 deficiencies, issues in NRO account handling, and failure to provide information sought by RBI. The penalties were imposed under Section 47(A)(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 Cr
- Entity Type
- Bank
- Action Type