Zero tolerance policy on flouting KYC norms in the offing


RBIThe Reserve Bank of India (RBI) is likely to adopt a zero tolerance policy to violations of know your customer/anti-money laundering (KYC/AML) norms by banks, according to reports.

RBI could also impose operational curbs like not allowing a bank to disburse loans for a period of three months or not allowing them to take part in treasury operations for a limited time period. Also, restrictions can be imposed on branch expansion.

The monetary penalty, which is Rs 5 lakh per violation, can also be increased.

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