The Reserve Bank of India has imposed a penalty of Rs one crore on HDFC Bank for non-compliance with directions on ‘know your customer/and anti-money laundering’ (KYC/AML) norms and on reporting of frauds.
“The RBI had received a reference from customs authorities regarding submission of forged bill of entries by certain importers to the bank for remittance of foreign currency,” RBI said. “Examination in this regard revealed violations of RBI directions on ‘KYC/AML norms’ and on reporting of frauds based on which a notice was issued to the bank advising it to show cause as to why monetary penalty should not be imposed for non-compliance with the aforesaid directions,” it said.
“After considering the bank’s reply, oral submissions made during the personal hearing and additional submission made by the bank after the personal hearing, the RBI came to the conclusion that the charges of non-compliance with the RBI directions were substantiated and warranted imposition of monetary penalty,” the banking regulator said.
“The penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949 …” the Reserve Bank added.