RBI Imposed Penalty: A total penalty of Rs 14.5 crore has been imposed on 14 banks, in which the biggest penalty of Rs 2 crore has been imposed on Bank of Baroda. The rules that banks have violated include ignoring the rules related to lending to NBFCs and bank financing to NBFCs.
Mumbai: RBI Imposed Penalty: If your account is in SBI, Bank of Baroda, IndusInd Bank and Bandhan Bank, then news is important for you. The Reserve Bank of India has imposed penalties on 14 banks including these four banks. All of them have been found guilty of violating several regulatory rules.
14.5 crore penalty on 14 banks
A total penalty of Rs 14.5 crore has been imposed on all these 14 banks, of which the biggest penalty of Rs 2 crore has been imposed on Bank of Baroda. This is followed by Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab & Sind Bank, South Indian Bank, The Jammu and Kashmir Bank with a penalty of Rs 1 crore. and Utkarsh Small Finance Bank. The smallest penalty of Rs 50 lakh is levied on the country’s largest bank State Bank of India.
Penalty on banks
RBI said that on scrutiny of the accounts of “a group of companies” it was found that the banks were not following certain rules. For this notice was also issued to the banks and their reply was sought in this regard. Banks were asked why penalty should not be imposed against them for not complying with the directions of the Banking Regulation Act, 1949. The Reserve Bank has issued a statement stating that the rules that banks have violated include ignoring the rules related to lending to NBFCs and bank financing to NBFCs.
Will not affect customers
The Reserve Bank has said that the rules related to Central Repository of Large Common Exposures, Central Repository of Information on Large Credits (CRILC) reporting in banks, operating guidelines of Small Finance Bank have been ignored. Along with this, banks have violated section 19(2) and section 20(1) of the Banking Regulation Act, 1949. Although the Reserve Bank has made it clear that this penalty has been imposed on banks for lack of regulatory compliance, it has nothing to do with any transaction of customers.