The Reserve Bank of India has imposed a ₹3-crore fine each on two lenders —- Deutsche Bank and Jammu and Kashmir Bank — for non-compliance of various norms, including asset classification and know your customer norms.
“The RBI has imposed, by an order dated November 5, a monetary penalty of ₹3 crore on Deutsche Bank for non-compliance with the directions …on Income Recognition and Asset Classification (IRAC) norms, KYC/ Anti-money Laundering (KYC/AML) norms, and on disclosure of monetary penalties imposed by the regulator,” it said on Wednesday.
In a separate statement, it said it has also imposed a monetary penalty of 3 crore on Jammu and Kashmir Bank for non-compliance IRAC norms and KYC/AML norms.
The RBI said the penalties on these two banks have been imposed taking into account the failure of the banks to adhere to the directions issued by it.
“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,” it said further.