RBI Enforces Penalties on Major Banks for Compliance Failures

The Reserve Bank of India has imposed financial penalties on several banks, including HDFC Bank and Punjab & Sind Bank, for failing to adhere to regulatory compliance standards. These penalties, totaling over Rs 153 lakh, highlight discrepancies in 'Know Your Customer' norms and other banking directives.

The Reserve Bank of India has taken decisive action against major banking institutions, sanctioning HDFC Bank and Punjab & Sind Bank for lapses in regulatory compliance. According to a statement released on Wednesday, HDFC Bank faces a hefty Rs 75 lakh penalty for breaching the RBI's 'Know Your Customer' directives.

In a separate announcement, the RBI stated that Punjab & Sind Bank has been fined Rs 68.20 lakh for failing to comply with regulations pertaining to the 'Creation of a Central Repository of Large Common Exposures - Across Banks' and 'Financial Inclusion - Access to Banking Services - Basic Savings Bank Deposit Account (BSBDA)'.

Additionally, KLM Axiva Finvest has been penalized Rs 10 lakh for not meeting the requirements related to the declaration of dividends. The central bank emphasized that these penalties are strictly due to regulatory deficiencies and do not question the legitimacy of any financial transactions or agreements made by these entities with their customers.

(With inputs from agencies.)