State Bank of Bikaner & Jaipur

RBI imposed monetary penalty on three public sector banks after a thematic review and scrutiny of fixed accounts opened in the name of certain organisations in Mumbai-based branches. The review found violations of RBI instructions and guidelines, including non-adherence to KYC norms (customer identification and acceptance procedures), monitoring of transactions in customer accounts, instructions regarding funds received through RTGS, opening fixed deposit accounts and granting overdrafts against them without due diligence or proper process, weaknesses in internal controls and management oversight, use of internal accounts for parking customer funds, and involvement of middlemen/intermediaries. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. Eight other banks were cautioned but not penalised.

The three penalised banks must absorb the monetary penalty and address the compliance gaps identified by RBI, especially around KYC/AML, transaction monitoring, RTGS controls, and FD/OD diligence. The eight cautioned banks face no monetary penalty in this release, but they are expected to strengthen controls and periodically review compliance processes going forward.