A penalty of Rs 30 lakh has been imposed on Bank of Baroda for deficiencies in regulatory compliance with regard to Know Your Customer (KYC) and Interest Rate on Deposits, the Reserve Bank of India (RBI) said on Friday.

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"The Reserve Bank of India has imposed a monetary penalty of Rs 30.00 lakh on Bank of Baroda for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016 and Reserve Bank of India (Interest Rate on Deposits) Directions, 2016," the central bank said in a statement.

This action is based on the 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, the RBI said.

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In a statement, RBI said, "The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2020, and the examination of the Risk Assessment Report and all related correspondences pertaining to the same revealed."

"Non-compliance with the aforesaid directions by the bank to the extent it (i) breached the stipulated transaction limits (aggregate of credits in a financial year and aggregate of all withdrawals & transfer in a month) in small accounts and (ii) failed to ensure that the interest rates applied in certain term deposit accounts were strictly as per the schedule of interest rates disclosed in advance," it said

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI said it came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions, it added.

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(Edited by : Pradeep John)