The
Reserve Bank of India has imposed a penalty of Rs.10 lakh (Rupees ten lakh only)
on Catholic Syrian 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 violations: (i)
non-adherence to KYC norms and AML standards while opening and operating certain
accounts; and (ii)
failure of bank's internal control systems in detecting the irregularities. The
RBI had issued a show-cause notice to the bank. In response thereto, the bank
had submitted a written replies. On a careful examination of the bank's replies,
the RBI found that the violations were conclusively established and the penalty
was accordingly imposed. G.
Raghuraj
Deputy General Manager Press
Release : 2007-2008/133 |