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.