RBI Penalty on SBICI Bank Ltd for KYC Violations

Mumbai, Apr 25 (UNI) The Reserve Bank of India has imposed a penalty of Rs 10 Lakh on SBI Commercial and International Bank Ltd in exercise of the powers vested in RBI under provisions of Section 47A (1)(b) of the Banking Regulation Act, 1949.

A Penalty of Rs five lakh each has been imposed for two violations.

The first pertains to non adherence to Know Tour Customer (KYC) norms while opening and operating Initial Pubilic Offering (IPO) related accounts and not completing KYC procedures for existing accounts as required under RBI instructions.

The second violation is failure of the bank's internal control systems to detect the lapses despite advice by RBI for conducting internal review of IPO funding and furnishing of wrong compliance to RBI, a RBI press release stated.

The RBI had issued a show cause notice to the bank and subsequently, the bank submitted a written reply. On examination, RBI found that violations were conclusively established and the penalty was accordingly imposed, the release added.

UNI