New Delhi, Feb 13 (KNN) The Reserve Bank of India (RBI) has imposed penalties on seven banks, including Allahabad Bank, Bank of Maharashtra, HDFC and Kotak Mahindra Bank, for violation of various banking norms.

A penalty of Rs 1.5 crore has been imposed each on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank for non-compliance with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification and reporting of frauds, and on the restructuring of accounts.

While a penalty of Rs 1 crore has been imposed on Andhra Bank for similar violations.

Besides, Rs 20 lakh fine has been imposed each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance with various directions on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.

RBI said “The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI.”

The 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 banks with their customers, it added.