Case Brief
By an order dated October 30, 2023, RBI imposed a monetary penalty of ₹30 lakh on Federal Bank Ltd. for non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The scrutiny found that the bank issued demand drafts of ₹50,000 and above without incorporating the purchaser's name on the face of the drafts. After a show-cause notice, the bank's reply, and oral submissions at the personal hearing, RBI concluded that the charge was substantiated and warranted the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 30.0 L
- Entity Type
- Bank
- Action Type
- Monetary penalty