Kolkata, July 26 (IANS) City-based public lenders Allahabad Bank and Uco Bank on Monday said Reserve Bank of India has imposed penalties of Rs. 2 crore each on them for violation of the Banking Regulation Act.
“The Reserve Bank of India in exercise of power conferred under Section 47 (A) (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, has imposed a penalty of Rs 20 million (Rs 2 crore) on our bank,” Allahabad Bank said in a filing to BSE.
“The bank has taken necessary preventive measures/comprehensive action plan to avoid such recurrence,” it added.
The banking regulator imposed a fine of Rs. 2 crore on Uco Bank for “lapses in adherence to KYC (know your customer)/AML (anti-money laundering) guidelines”.
The bank has taken necessary corrective measures to strengthen its internal control mechanisms to avoid such recurrence, Uco Bank also said in a BSE filing.
The RBI also imposed penalties ranging from Rs 2 crore to Rs 5 crore on Bank of Baroda, HDFC Bank, and Punjab National Bank over the issues related to violation of banking norms.