Case Brief
RBI has imposed a monetary penalty of Rs 55 lakh on Indian Bank for non-compliance with certain provisions of the RBI (Know Your Customer) Directions, 2016. The breach arose from a scrutiny linked to a high-value fraud report, which found that the bank had not performed the required customer due diligence while opening an account in the name of a sole proprietary firm. RBI issued a show-cause notice, reviewed the bank’s response and submissions, and then confirmed the violation and the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 55.0 L
- Entity Type
- Bank
- Action Type
- Monetary penalty