The Reserve Bank of India fined three private sector banks, ICICI Bank, HDFC Bank and Axis Bank for violating know-your-customer (KYC) norms and banks also failed to file cash-transaction reports in some cases.
A penalty of Rs 1 crore, Rs 4.5 crore and Rs 5 crore on ICICI Bank, HDFC Bank and Axis Bank, respectively is levied.
RBI however, said its investigation of these banks did not reveal any evidence of money laundering and said that any conclusive inference in this regard can be drawn only by an end-to-end investigation of the transactions by tax and enforcement agencies.
The RBI scrutinized books of accounts, internal control, compliance systems and processes of the banks' corporate offices and some branches during March-April 2013. This was to investigate the allegations of violation of several RBI regulations, Foreign Exchange Management Act guidelines, and so on, made by online magazine Cobrapost.com in a sting operation.