RBI fines 22 banks US$8.3 million

Banks penalized for breaking anti-money laundering and other regulations.

The Reserve Bank of India, the central bank, has ordered 22 banks to pay a combined US$8.3 million in penalties. Another seven banks were sent notices to ensure compliance with the norms.

Among those fined was the State Bank of India, the largest lender by assets, which will pay US$501,000. RBI also penalized HDFC Bank Ltd., India’s biggest by market value, Axis Bank Ltd. and ICICI Bank Ltd. for flouting the rules. Axis was ordered to pay US$843,000; HDFC Bank US$752,000 and ICICI, US$167,000.

The largest fine, however, was levied against the government-controlled Indian Overseas Bank at US$1.8 million.

The crackdown follows efforts by financial regulators and law enforcement agencies worldwide to curtail money laundering and fraud. RBI is investigating money laundering allegations against Indian banks and said appropriate action will be taken against those lenders that breached rules.