KYC Violation by Indian Overseas Bank

Reserve Bank of India has imposed a penalty of 2 crore on Indian Overseas Bank (IOB) for violating Know Your Customer (KYC) norms. The Reserve Bank of India in its press release said a fraud was detected in one of the branches of Chennai-headquartered Indian Overseas Bank. It added that the examination of the documents, including the bank’s internal inspection report, revealed non-compliance with the directions issued by the RBI on KYC norms.