The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.75 crores on four public sector banks for non-compliance with the Know Your Consumer (KYC) requirements and norms for opening of current accounts, reports ANI.
Punjab National Bank, Allahabad Bank and the UCO Bank are fined Rs 50 lakh each and Corporation Bank is penalised by Rs 25 lakh by the banking regulator.
The Central Bank discovered irregularities in current accounts opened by these banks while acting on several complaints in the regard.
"The penalties are imposed in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act 1949, taking into account the failure of banks to adhere to the aforesaid sanctions," the RBI said in a statement.
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