MUMBAI: The Reserve Bank of India (RBI) said it has imposed a monetary penalty of Rs5crore on Federal Bank for violation of Section 19(2) of Banking Regulation Act, 1949 and for non-compliance with the directions issued by RBI on (a) reporting of data on Central Repository of Information on Large Credits (CRILC), (b) reporting to RBI for assessment under RBS, (c) payment of compensation for delay in resolution of ATM-related customer complaints, and (d) Know Your Customer/Anti-money Laundering (KYC/AML) norms.
“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 with its customers,” an RBI statement added..
