With this Syndicate Bank enters the long list of defaulters marked as violaters by the RBI.
On December 12, RBI imposed a monetary penalty of Rs 5 crore on the public sector bank for violating the Know Your Customer (KYC)/Anti-Money Laundering (AML) norms.
All these penalties are flagged off by the central bank in adherence to the Banking Regulation Act.
“A scrutiny was conducted by RBI of certain branches of the bank in the aftermath of a fraud reported in these branches. Based on the findings of the scrutiny and examination of related documents obtained in this regard, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with directions/guidelines issued by RBI,” said RBI.
“After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/guidelines were substantiated and warranted imposition of monetary penalty,” it added.
Prior to this, the bank had penalised Union Bank of India with Rs 2 crore for non-compliance of KYC norms.
In October, RBI slapped Rs 6 crore fined on Yes Bank for non-compliance of asset disclosures and security breach disclosure rules. Further, it also fined IDFC Bank with Rs 2 crore for not adhering to the loans and advances norms.