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Reserve Bank of India imposes monetary penalty on KEB Hana Bank

The examination of the risk assessment report and all related correspondences revealed non-compliance with certain directions related to interest rates offered on deposits.

May 13, 2022 / 06:05 PM IST

The Reserve Bank of India (RBI) on May 13 imposed a monetary penalty of Rs 59 Lakh on KEB Hana Bank for non-compliance with certain directions.

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 bank with its customers, the RBI said.

The statutory inspection for supervisory evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2020.

The examination of the risk assessment report and all related correspondences revealed non-compliance with certain directions related to interest rates offered on deposits.

The RBI said interest rates offered by the lender were not consistent and transparent, details of interest rates were not available in the Core Banking System for supervisory review. The interest rates were not uniform for all customers and were also discriminatory in nature, according to the central bank.

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"In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the RBI directions, as stated therein," the RBI said.

After considering the bank’s reply to the notice, and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.



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Moneycontrol News
first published: May 13, 2022 06:05 pm
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