The Reserve Bank of India has forced a penalty of Rs 1.75 crore on four public sector banks, including Punjab National Bank and UCO Bank, for non-compliance with Know Your Customer requirements and norms for opening of current accounts.
Punjab National Bank, Allahabad Bank, and UCO Bank have been fined Rs 50 lakh each, while a penalty of Rs 25 lakh has been imposed on Corporation Bank.
The central lender said the penalty has been imposed for non-compliance with certain provisions of directions issued by it on KYC norms or anti-money laundering standards and opening of current accounts.
The action, however, is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers, the RBI added.
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