The Reserve Bank of India (RBI) has imposed a fine of INR50 million on Axis Bank, INR45 million on HDFC Bank, and INR10 million on ICICI Bank, for violating guidelines related to details of customer identity known as "know your customer" rules.
The central bank investigation following the investigation by independent news website Cobrapost had alleged widespread money laundering practices at their branches.
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The RBI stated that the investigation did not reveal any prima facie evidence of money laundering against the three banks.
The central bank reported that any conclusive inference can be drawn only by an end to end investigation of the transactions by tax and enforcement agencies.
RBI has investigated these banks scrutiny of accounts, compliance systems, internal control and processes from their corporate offices and branches during March and April 2013.
Prior to this, ICICI Bank, Axis Bank and HDFC Bank had received show-cause notices from the central bank.
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By GlobalDataRBI said: "After considering the facts of each case and individual bank’s reply, as also, personal submissions, information submitted and documents furnished, the Reserve Bank came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty."
In March 2013, RBI investigated Axis Bank, ICICI Bank and HDFC Bank, and their wealth management divisions, regarding the sale of gold coins.
In May, RBI said it planned to introduce wealth management norms, a draft for which will, reportedly, be issued in June.
