RBI imposes Rs.1 crore penalty for this bank for violating its KYC, AML norms.

The Reserve Bank of India (RBI) imposed Rs.1 crore penalty on private sector lender HDFC Bank for violating know your customer (KYC) and anti-money laundering (AML) norms. The penalty was imposed on 18 June 2019. RBI had received a reference from customs' authorities regarding submission of forged bill of entries (BoEs) by certain importers to the bank for remittance of foreign currency. RBI's examination revealed the violations of the RBI directions on KYC/AML norms and on reporting of frauds. RBI said that the penalties are based on deficiencies in regulatory compliance. Also it is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.