The Reserve Bank of India (RBI) has suggested penalizing banks and NBFCs for non-compliance.
The Reserve Bank of India (RBI) said it had filed cases against several state-owned banks, including State Bank of India (SBI), Bank of India, and Punjab Sindh Bank, for various violations of laws.
‘How much have the banks been penalised?’
The State Bank of India has been fined with a penalty of Rs 1.3 crore for failing to comply with specific directives issued by the RBI concerning ‘Loans and Advances: Statutory and Other Restrictions’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures’, according to an RBI statement.
Indian Bank, on the other hand, has been penalized Rs 1.62 crore for contravening certain directions related to ‘Loans and Advances: Statutory and Other Restrictions’, Know Your Customer (KYC) Guidelines, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
Punjab & Sind Bank has incurred a monetary penalty of Rs 1 crore for non-compliance with specific provisions of the depositor education and awareness fund scheme, as per the RBI’s statement.
Additionally, Fedbank Financial Services Limited has been penalized Rs 8.80 lakh for its failure to adhere to certain provisions outlined in the directions regarding monitoring fraud in non-banking financial companies (NBFCs).
In its clarification, the RBI has emphasized that these penalties have been imposed on the banks and the NBFC due to deficiencies in regulatory compliance and should not be interpreted as judgments on the validity of any transactions or agreements they have entered into with their customers.
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