New Delhi: The Reserve Bank of India (RBI) on Monday imposed penalty on as many as four public sector banks ranging between Rs 25-50 lakhs for non-compliance of Know Your Customers (KYC) norms and anti-money laundering standards. According to an official statement released by RBI, the four state-run lenders include Punjab National Bank (PNB), Allahabad Bank, UCO Bank and Corporation Bank. Reports also suggest that PNB, Allahabad Bank and UCO Bank were fined Rs 50 lakh each while Corporation Bank was fined Rs 25 lakh.

Giving details, the RBI said the penalty has been imposed for non-compliance with certain provisions of directions issued by it on Know Your Customer norms or anti-money laundering standards and opening of current accounts. The action, however, 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 banks with their customers, the RBI added.

The banking regulator found irregularities in current accounts opened by these banks after receiving a complaint. “Based on the findings, Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions,” the Central Bank said in an official statement on July 2. "Based on the findings, Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions," the statement read further.

"After considering the replies received from the banks, and submissions made during the personal hearings, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were sustained and warranted imposition of monetary penalty," it added.

Last month, RBI had fined country's largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions. The fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency, the RBI had said.

The fine was imposed through an order last Thursday after considering HDFC Bank's reply, oral submissions made during the personal hearing and additional submission made, the apex bank added further.