BSE seeks clarification from ICICI Bank over Rs50-lakh RBI fine

The Bombay Stock Exchange has sought a clarification from ICICI Bank Ltd with respect to a news article appearing in The Economic Times today "RBI Fines ICICI, BOB over KYC Rules." The reply is awaited, the exchange said.

Reports in The Economic Times and elsewhere said the Reserve Bank of India has fined the private ICICI Bank and the state-run Bank of Baroda over violations of customer protection rules for up to two years, allowing fraudsters to cash fake checks and postal orders,.

The central bank said it had fined ICICI Bank, India's largest private sector lender, Rs50 lakh, while Bank of Baroda was fined Rs25 lakh.

The banks had no immediate comment.

The RBI said its move followed a complaint over a fraud in five banks, including ICICI and BoB as well as State Bank of India, State Bank of Patiala, and Axis Bank.

The RBI did not impose any penalty on the latter three banks but has cautioned them to ensure strict compliance of what it calls "know-your-customer" rules, it said.