The Reserve Bank of India (RBI) on Monday, June 26, imposed a monetary penalty of Rs 30 lakh on Standard Chartered Bank, India, for non-compliance with certain provisions of the Reserve Bank of India KYC Directions, 2016.
According to the apex bank, the examination of the Risk Assessment Report pertaining to Statutory Inspection for Supervisory Evaluation and review of compliance with KYC directions in the bank carried out by RBI and all related correspondence in that regard, revealed that the bank allotted multiple customer identification codes to some of its individual customers.
Consequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions issued by RBI.
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After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank, to the extent of non-compliance with such directions, the RBI added.
The penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of Section 47 A (1) (C) of the Banking Regulation Act, 1949.
