16 Banks Fined By Reserve Bank For Violating Anti-Money Laundering Laws

01/04/2015 10:46 AM IST | Updated 15/07/2016 8:25 AM IST
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Raghuram Rajan, governor of the Reserve Bank of India (RBI), left, speaks as Arun Jaitley, India's finance minister, listens during a news conference at the central bank's headquarters in New Delhi, India, on Sunday, March 22, 2015. Jaitley said he discussed plans to combine India's stock and commodities market regulators in a meeting with the Securities and Exchange Board of India, according to comments made to reporters in New Delhi. Photographer: Kuni Takahashi/Bloomberg via Getty Images

The Reserve Bank of India penalised 16 central cooperative banks with a fine of Rs 5 lakh each for non-adherence of the Know Your Customer and Anti-Money Laundering guidelines.

The lenders were issued show-cause notices and the action was taken after going through the responses, the RBI said in a notification.

"After considering the facts of the cases, the banks' replies and personal submissions in the matter, the Reserve Bank of India came to the conclusion that the violations were substantiated and warranted imposition of penalty," it said.

Earlier in March, over 480 urban cooperative banks were put under scrutiny by the central bank for alleged violation of anti-money laundering laws. The RBI had also issued instructions to block accounts of all non complying customers.

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