Case Brief
The Reserve Bank of India imposed a monetary penalty on Indian Overseas Bank on February 27, 2018 for non-compliance with RBI directions on Know Your Customer (KYC) norms. RBI said the action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after a fraud was detected in one branch and examination of documents, including the bank's internal inspection report, revealed non-compliance. After issuing a show-cause notice and considering the bank's reply, oral and written submissions, and additional documents, RBI concluded that the charges were substantiated and imposed a penalty of ₹20 million.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty