Sick and tired of being penalized every now and then urban cooperative banks can find consolation that they alone are not defaulters in the eyes of the Reserve Bank of India.
For a change the Reserve Bank of India has imposed hefty monetary penalty on leading private banks such as HDFC, Indusind, RBL and high-sounding PSUs such as Bank of India and Allahabad Bank.
These commercial cousins of UCBs have been found violating regulatory directions and guidelines on KYC, among other things,
Some of the high-profile banks named by RBI include Allahabad Bank, Bank of India, Bank of Baroda, Canara Bank, Corporation Bank, HDFC Bank, IndusInd Bank, Punjab National Bank, RBL Bank, SBBJ,SBM, Syndicate Bank, and UCO Bank.
Eight other banks, namely, Axis Bank, Federal Bank, ICICI Bank, Kotak Mahindra Bank, OBC, Standard Chartered Bank, SBI and Union Bank of India have been advised to put appropriate measures in place and ensure compliance with KYC requirements and FEMA provisions now and in the future.