A police officer stands guard in front of the Reserve Bank of India (RBI) head office in Mumbai April 17, 2012. The Reserve Bank of India cut interest rates on Tuesday for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to flagging economic growth but warned that there is limited scope for further rate cuts. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS)
A police officer stands guard in front of the Reserve Bank of India (RBI) head office in Mumbai April 17, 2012. The Reserve Bank of India cut interest rates on Tuesday for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to flagging economic growth but warned that there is limited scope for further rate cuts. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS)

New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 mn each on UCO Bank and Allahabad Bank, the state-owned lenders said. The banks have been fined for non-compliance with the central bank’s norms on know-your-customer, anti-money laundering standards, combating of financing of terrorism, and directions on opening of current accounts by banks, according to the notifications.

“The bank has taken necessary measures for ensuring compliance of said RBI directions. Considering the size of the bank, the amount of penalty will not have material impact,” Allahabad Bank said.

This follows the central bank imposing a penalty of Rs 30 mn on UCO Bank in March, and Rs 20 mn on Allahabad Bank, in addition to 22 other banks, for delay in complying with directions related to the SWIFT messaging software.

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