The
Reserve Bank of India has imposed
a penalty of Rs. 10 lakh (Rupees ten lakh only) on SBI Commercial and International
Bank Ltd. in exercise of the powers vested in RBI under the provisions of Section
47A (1) (b) of the Banking Regulation Act, 1949. Penalty of Rs. 5 lakh (Rupees
five lakh only) each has been imposed for the following two violations: (i)
non adherence to KYC norms while opening and operating IPO related accounts and
not completing KYC procedure for existing accounts as required under RBI instructions;
and (ii)
the failure of bank's internal control systems to detect the lapses and despite
advice by RBI for conducting internal review of IPO funding, its failure to detect
the lapses and furnishing of wrong compliance to RBI instead. 2.
The RBI had issued a show cause notice to the bank. In response thereto, the bank
had submitted a written reply. On a careful examination of the bank's reply, the
RBI found that the violations were conclusively established and the penalty was
accordingly imposed. G
Raghuraj
Deputy
General Manager Press
Release : 2006-2007/1469 |