India's central bank said on Monday it had levied penalties on three banks for violating guidelines on initial public offerings and the holding of accurate client data.
"The RBI has imposed monetary penalties on three more banks for breach of prudent banking practices and for not adhering to its directives relating to loans against shares/IPO," the Reserve Bank of India said in a statement.
The penalty follows the revelation in December that bank accounts had been misused to fund IPOs such as those of YES Bank Ltd and Infrastructure Development Finance Co Ltd due to the banks' lapses in monitoring accounts.
The central bank and the stock market regulator, the Securities & Exchange Board of India, have been probing alleged irregularities in IPOs in which investors are accused of using false identities and bank accounts to secure more shares in stock offerings.
The RBI levied a penalty of 2.5 million rupees ($56,000) on HDFC Bank, 1 million rupees on ING Vysya Bank - which is 44 percent owned by Dutch group ING - and 500,000 rupees on IDBI Ltd.
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