Reserve Bank of India i.e. RBI has taken action on 3 banks including the country’s largest government bank SBI and imposed a fine of more than Rs 4 crore.
RBI has said that Indian Bank, Punjab and Sindh Bank and SBI have violated the regulation norms, after which this action has been taken. At the same time, a heavy fine has also been imposed on NBFC Fedbank Financial. RBI has said that this action will not affect the transactions or validity of customers.
The Central Reserve Bank has said that it has imposed penalty on SBI and Indian Bank and Punjab and Sindh Bank for violation of various regulatory norms. This action has been taken by RBI for non-compliance of certain instructions of ‘Statutory and Other Restrictions on Loans and Advances’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures’.
RBI has imposed a penalty of Rs 1.3 crore on State Bank of India for non-compliance with certain instructions of the Management Guidelines on Loans, Advances and ‘Intra-Group Transactions and Exposures’. RBI said that ‘A fine of Rs 1.62 crore has been imposed on Indian Bank for violation of certain instructions related to loan and advance rules, KYS.
RBI said a penalty of Rs 1 crore was imposed on Punjab and Sind Bank for non-compliance with certain provisions of the Depositor Education and Awareness Fund Scheme. RBI has imposed a fine of Rs 8.80 lakh on FedBank Financial Services Ltd for non-compliance with certain provisions of the directions on monitoring of frauds in NBFCs.
RBI said the penalty on banks and NBFCs is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by them with their customers.
