HDFC Bank violates KYC norms; RBI imposes penalty

Friday 31 January 2020 12:24 CET | News

The Reserve Bank of India (RBI) has imposed INR 1 crore penalty on HDFC Bank for non-compliance with KYC norms. 

According to the RBI, a supervisory evaluation of the bank revealed that the HDFC Bank had ‘failed to exercise ongoing due diligence’ with regards to 39 current accounts opened by its customers for bidding in Initial Public Offer, The Logical Indian reports.

Thus, the Reserve Bank of India concluded that imposition of monetary penalty was warranted. The decision behind this action 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 bank with its customers.

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Keywords: RBI, monetary penalty, HDFC Bank, KYC, norms, compliance, banks, due diligence, accounts
Categories: Fraud & Financial Crime
Countries: India
This article is part of category

Fraud & Financial Crime