Dhanlaxmi Bank, a private sector lender witnessed a fall in share price on Friday after the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 10 million on Dhanlaxmi Bank, for violation of Know Your Customer (KYC) norms and Anti Money Laundering (AML) standards.

RBI said, 'The penalty has been imposed in exercise of powers vested in the Reserve Bank under the provisions of section 47(A)(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions, directions, guidelines issued by the RBI from time to time.'

'This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers,' it added. 

Shares of Dhanlaxmi Bank are trading at Rs 25.85, down Rs 0.3, or 1.15% at the Bombay Stock Exchange (BSE) on Friday at 9:46 a.m.

The scrip has touched an intra-day high of Rs 26 and low of Rs 25.55. The total volume of shares traded at the BSE is 10,026.