Mumbai: The Reserve Bank of India (RBI) on Monday said it has penalized 22 banks, including the State Bank of India and Punjab National Bank, for violation of know your customer (KYC) norms and money laundering.

The Central bank said it had penalized the banks after carrying out scrutiny of books of accounts, internal control, compliance systems and processes of the banks.

The RBI said in a statement that it has imposed the penalty "for violation of its instructions, among other things, on know your customer (norms) and anti-money laundering (guidelines)".

The country's largest lender, State Bank of India, has been fined Rs 3 crore. The penalty on Punjab National Bank is Rs 2.5 crore.

Other banks penalized by the RBI include Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Indian Overseas Bank, Vijaya Bank, Yes Bank, Ratnakar Bank and Deutsche Bank.

"Based on the findings of the scrutiny, the Reserve Bank issued a show cause notice to each of these banks, in response to which the individual banks submitted written replies," the RBI said.


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