INSUBCONTINENT EXCLUSIVE:
lender HDFC Bank for violating norms related to know your customer (KYC), anti-money laundering and reporting of frauds."This action is
based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered
into by the bank with its customers," said the central bank in a statement."Examination in this regard revealed violations of RBI directions
on KYC/AML norms and on reporting of frauds based on which a notice was issued to the bank advising it to show cause as to why monetary
penalty should not be imposed for non-compliance with the aforesaid directions."The RBI added that it had received a reference from customs
authorities for submission of forged bill of entries by certain importers to the bank for remittance of foreign currency.The RBI said it
considered the lender's reply and oral submissions made during the personal hearing as well as an additional submission made after the
It concluded that the charges of non-compliance with regulatory norms were proven with the imposition of monetary penalty warranted.
