The Reserve Bank of India (RBI) has slapped a fine of Rs 25 lakh

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on Bank of Rajasthan (BoR) for violation of various norms. The bank was penalised after the ‘violation was substantiated and warranted imposition of penalty’, a release said.

According to RBI, the penalty was imposed under the Section 47 A(1)(b) of the Banking Regulation Act for violation of directions issued under Section 35A in the area of acquisition of immovable properties, deletion of records in the bank's IT systems, non-adherence to know your customer (KYC) and anti-money laundering guidelines in the opening and conduct of certain accounts.

The central bank had also found some irregularities in the conduct of accounts of a corporate group with the bank. The bank also failed to provide certain documents sought by the RBI and misrepresented that such documents were not available.

“The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. Based on the reply, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of penalty. Accordingly, it penalised the bank,” RBI said in its release.

All attempts made to reach the bank failed.

The banks that were penalised a few years ago by RBI included ICICI Bank, HDFC Bank, IDBI Bank, ING Vysya Bank, Citibank, Vijaya Bank, Standard Chartered Bank, Bharat Overseas Bank and Indian Overseas Bank for violation of KYC norms that resulted in the initial public offering allotment scam.