Case Brief
The Reserve Bank of India penalised 13 banks, including Allahabad Bank, for violations of regulatory directions, instructions and guidelines, mainly on KYC norms. The RBI said its scrutiny found weaknesses in internal controls and management oversight, including non-adherence to customer identification and risk categorisation requirements, inadequate monitoring of transactions in customer accounts, delayed or deficient suspicious transaction reporting, and FEMA-related non-compliance. The penalties were imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after show-cause notices and consideration of replies and submissions from the banks.
Action Snapshot
- Primary Impact