SBI

The RBI imposed monetary penalties on 13 banks after a scrutiny of advance import remittances and account-opening/monitoring practices found non-adherence to KYC requirements (including customer identification and risk categorisation), non-adherence to instructions on monitoring transactions in customer accounts and prompt filing of suspicious transaction reports (STRs), and non-adherence to directions/guidelines issued under FEMA provisions. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after show-cause notices and consideration of the banks' replies, submissions, and documents.

The penalised banks must absorb the monetary penalties and address the compliance gaps identified by the RBI, particularly around KYC, transaction monitoring, STR reporting, and FEMA-related controls. The eight other banks named in the release were not penalised, but were advised to strengthen measures and periodically review compliance processes on an ongoing basis.