RBI Fines HDFC Bank, Punjab & Sind Bank for Compliance Issues

Mumbai, Mar 26 (PTI) The Reserve Bank on Wednesday said it has imposed penalties on HDFC Bank and Punjab & Sind Bank for deficiencies in regulatory compliance.

A penalty of Rs 75 lakh on HDFC Bank has been imposed for non-compliance with certain directions issued by RBI on 'Know Your Customer' (KYC), the central bank said in a statement.

In another statement, the RBI said a penalty of Rs 68.20 lakh has been impose on Punjab & Sind Bank for non-compliance with certain directions on 'Creation of a Central Repository of Large Common Exposures - Across Banks' and 'Financial Inclusion - Access to Banking Services - Basic Savings Bank Deposit Account (BSBDA)'.

The Reserve Bank of India has also imposed a penalty of Rs 10 lakh on KLM Axiva Finvest for non-compliance with requirements relating to declaration of dividends.

In all cases, the central bank said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.