RBI has imposed a combined penalty of nearly Rs50 crore on Indian banks. Strangely, the apex banking regulator has let foreign banks get away and issued just a letter of caution
On 12th July, RBI imposed a combined penalty of nearly Rs50 crore on 22 banks for violation of KYC (know your customer) norms and mis-selling of gold, insurance and mutual fund products. But, it has stood firm on its original claim that, despite Cobrapost’s sting operation showing scores of bank managers enthusiastically suggesting ways to break and bend the rules, there were no violations. Isn’t it curious that RBI ignores the fact that its own inspectors discovered the precise violations that bank officials described as ways of laundering black money?