The Reserve Bank of India has penalized six more state run banks for violating the know your customer norms. The Alahabad Bank, IDBI Bank, Bank of Maharashtra, Dena Bank, Corporation Bank and the Indian Banks have been imposed penalties, for their acts. However, the IndusInd Bank got away, with a warning, since its explanation was satisfactory. The Allahabad Bank and the Bank of Maharashtra have to pay .5 crore Rupees. The IDBI Bank and the Indian Bank have shell out one crore Rupees, each. The Dena Bank has to pay 2 crore Rupees, as the penalty for violating the KYC norms. The Corporation Bank has been penalized 1.5 crore Rupees.
Just a month ago, the Reserve Bank of India booked 22 public sector banks. The RBI is inspecting all the banks in India regularly for the money laundering and this has created a Shockwave in the public banking sector.