Case Brief
The Reserve Bank of India penalised 22 banks after conducting scrutiny of their books of accounts, internal control systems, and compliance processes at their offices in April 2013. RBI found violations of instructions on KYC and AML, including customer identification, risk categorisation, periodic KYC review and updation, KYC for walk-in customers and third-party products, non-filing of cash transaction reports, monitoring of customer and dormant accounts, cash acceptance limits for sale of gold coins and demand drafts, remittance limits under the Liberalised Remittance Scheme, repatriation from NRO accounts, and import of gold on consignment basis. The penalties were imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The release separately notes that seven other banks received cautionary letters because no serious violation was established, and that scrutiny of seven more banks was still in progress.