RBI imposes penalties on 14 banks for various rule violations
This is probably the highest number of banks receiving RBI monetary penalties on a single day for various rule violations.
July 07, 2021 / 09:24 PM IST
The Reserve Bank of India (RBI) on July 7 imposed monetary penalties on 14 banks including Bandhan Bank, Bank of Baroda and State Bank of India (SBI) for various rule violations, the central bank said in a press release. These 14 banks include public sector banks, private banks, foreign bank, 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.
Other banks upon which the monetary penalties have been imposed include Bank of Maharashtra, Central Bank of India, Credit Suisse, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu and Kashmir Bank and Utkarsh Small Finance Bank.
The quantum of penalties ranges from Rs 50 lakh to Rs 2 crore each. The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable, the RBI said.
Further, 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, the RBI said.