State Bank of Indore fined for flouting KYC norm

The Reserve Bank of India has slapped a Rs 5 lakh fine on State Bank of Indore for flouting Know Your Customer (KYC) norms regarding opening of customer accounts and failing to monitor cash transactions at one of its branch in 2000.

RBI said in a statement today that it has imposed a penalty on State Bank of Indore, Indore, Madhya Pradesh, under Section 47(A)(1)(b) of the Banking Regulation Act, 1949 for violation of instructions/guidelines issued in regard to opening of account and monitoring of cash transactions.

Last year, the central bank had levied a penalty of Rs 5 lakh on Citigroup's Indian banking unit, for flouting the KYC norms for not verifying the background of an account holder.

RBI has asked banks to implement the KYC Norms, at the branch level to keep a check on money laundering.