Dhanlaxmi Bank fined for AML non compliance

The Reserve Bank of India has imposed a monetary penalty of Rs 10 million on Dhanlaxmi Bank Ltd for violation of its instructions, among other things, on KYC norms and AML standards,” the central bank said in a statement.

Dhanlaxmi Bank is one of the leading private sector banks in India. After considering the bank’s reply, as also, personal submissions, information submitted and documents furnished, RBI came to the conclusion that the bank had violated the instructions/guidelines issued, from time to time, which warranted imposition of monetary penalty on it.

RBI further said that “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 and its customers.