RBI slaps Rs 1.75-crore penalty on Indian Bank for non-compliance

The non-compliance included the opening of savings bank accounts of a co-operative society and non-adherence with directions on KYC

The Reserve Bank of India (RBI) has imposed a monetary penalty of a total of Rs 1.75 crore on Chennai-based Indian Bank for non-compliance with its various directions. 

The non-compliance included the opening of savings bank accounts of a co-operative society and non-adherence with directions on Know Your Customer (KYC)/Anti Money Laundering (AML) norms; window-dressing of balance sheet as on March 31, 2018, by loan disbursement amounting to Rs 508.28 crore; and delayed reporting of frauds.

"The said penalty will not have any material impact on the Bank," said Indian Bank in a regulatory filing.