RBI imposes Rs 1 crore penalty on Dhanlaxmi Bank
The Reserve Bank of India on Thursday imposed a Rs 1-crore penalty on Dhanlaxmi Bank for non-adherence to KYC (know your customer) and anti-money laundering guidelines.
“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,?” the RBI said in a statement.
The RBI had issued a show cause notice to the bank for not having complied with KYC and AML guidelines. It pertained to a current account that is under investigation by the economic offences wing of Mumbai police.?
After considering the documents and personal submission by the bank, the RBI came to the conclusion that Dhanlaxmi Bank had violated KYC & AML guidelines from time to time.