Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10 million on Dhanlaxmi Bank Ltd. for violation of its instructions, including Know Your Customer (KYC) norms and Anti Money Laundering (AML) standards. RBI said the penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after issuing a show-cause notice and considering the bank’s reply, personal submissions, information, and documents. The release notes the deficiencies were in regulatory compliance, including in relation to a current account under investigation by the Economic Offences Wing (EOW), Mumbai.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty