RBI Slaps Rs61.40 lakh penalty on RBL Bank for Not Complying with KYC Rules
Moneylife Digital Team 25 November 2024
Reserve Bank of India (RBI) has imposed a Rs61.40 lakh penalty on RBL Bank Ltd for non-compliance with directions issued by RBI on know-your-customer (KYC).
 
RBI statutory inspection of RBL Bank, which assessed its financial position as of 31 March 2022 and 31 March 2023, revealed several compliance failures. 
 
RBL Bank did not obtain a prescribed officially valid document (OVD) while opening certain credit card accounts. It had allotted multiple customer identification codes to some customers instead of a unique customer identification code (UCIC) for each customer.
 
After considering the facts of the case and the Bank’s reply, RBI concluded that the violations were substantiated and warranted the imposition of a penalty.
 
RBI says its action is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the Bank with its customers.
 
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