RBI slaps monetary penalty on SBI, 13 other banks for flouting provisions
These 14 banks include public sector banks, private banks, foreign banks, Co-operative banks and one small finance bank.
FollowThe Reserve Bank of India has imposed penalties on 14 banks for non-compliance with certain provisions of directions issued by the RBI.
These 14 banks include public sector banks, private banks, foreign banks, Co-operative banks and one small finance bank.
The violations include non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’ ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ and ‘Loans and Advances – Statutory and Other Restrictions’, the RBI said.
The RBI has imposed penalties on Bank of Baroda (Rs 2 crore), Rs 1 crore penalty on Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank, and Utkarsh Small Finance Bank, respectively.
RBI has also imposed Rs 50 lakh fine on the State Bank of India (SBI).
"This action 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," RBI added.
A scrutiny of the accounts of the companies of a group was carried out by the RBI. It was observed that the banks had failed to comply with provisions of one or more directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949.
Notices were issued to the banks advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions/contraventions of provisions of the Banking Regulation Act, 1949.
This is probably the highest number of banks receiving RBI monetary penalties on a single day for various rule violations.
NOTE: Asianet News humbly requests everyone to wear masks, sanitize, maintain social distancing and get vaccinated as soon as eligible. Together we can and will break the chain #ANCares #IndiaFightsCorona
