India

India's RBI fines three public banks and Pine Labs for KYC and transaction lapses

Bank compliance teams must fix KYC and transaction controls or face RBI penalties

Data Privacy Financial Services
Economic Times ·
Save
Change
India's RBI has imposed monetary penalties totalling Rs 2.20 crore — Rs 95.40 lakh on Union Bank of India, Rs 63.60 lakh on Central Bank of India, Rs 58.50 lakh on Bank of India and Rs 3.10 lakh on Pine Labs — for breaches including failure to credit unauthorised electronic transactions within 10 working days, delayed Know Your Customer (KYC) uploads, unauthorised levies and issuance of prepaid payment instruments without Full-KYC.
Why it matters
Banks must credit amounts from unauthorised electronic transactions to affected customer accounts within 10 working days of customer notification and provide 24x7 channels for customers to report such transactions. Banks must upload customer Know Your Customer (KYC) records to the Central KYC Records Registry within prescribed timelines, avoid opening duplicate Basic Savings Bank Deposit (BSBD) accounts and stop levying unauthorised ad-hoc charges or withholding interest on matured Term Deposit Receipts. Prepaid payment instrument (PPI) issuers must complete Full-KYC before issuing instruments.
Implications
  • — Compliance teams at Indian banks must credit unauthorised electronic-transaction amounts to customer accounts within 10 working days of notification or face RBI monetary penalties immediately.

Unlock the full brief.

Implications — what this forces you to change
Who is affected — which roles and obligations are exposed
What to watch — binding deadlines and enforcement dates
Real-time alerts — delivered the moment a binding change is published
Clarify with AI — turn any brief into a decision for your role
Start free trial

No credit card · $29/month (~₹2,400) after trial · Active in seconds

Source
Economic Times
View on Economic Times

Clarify answers are AI-generated. Verify against the source before acting.

Clarify with AI — Pro only

You asked:

Clarify turns any brief into answers specific to your role and exposure.

Pro includes

Implications — what this forces you to change
Who is affected — which roles and obligations are exposed
What to watch — binding deadlines and enforcement dates
Real-time alerts — delivered the moment a binding change is published
Clarify with AI — turn any brief into a decision for your role

$29/month (~₹2,400) · Founding rate, locked for life. Cancel anytime.

Start your trial to clarify this brief

You asked:

Clarify is part of Pro. Start a 14-day trial for full access to every brief, unlimited Clarify questions, and real-time alerts.

Pro includes

Implications — what this forces you to change
Who is affected — which roles and obligations are exposed
What to watch — binding deadlines and enforcement dates
Real-time alerts — delivered the moment a binding change is published
Clarify with AI — turn any brief into a decision for your role

$29/month (~₹2,400) after trial. No credit card required. Cancel anytime.

Start 14-day trial Sign in