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The Reserve Bank of India has imposed a penalty of ₹1 crore on Dhanlaxmi Bank for violation of, among other things, norms related to Know Your Customer (KYC) norms and Anti Money Laundering (AML).
In a statement, the central bank said the penalty has been imposed in exercise of powers vested in the RBI under the provisions of the Banking Regulation Act, 1949, taking into account violations of the instructions/ directions/ guidelines issued by it from time to time.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers,” said the RBI.
The central bank had issued a show-cause notice to the old generation private sector bank for not having complied with the KYC and AML guidelines in respect of a current account under investigation of the Economic Offences Wing, Mumbai.
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