Reserve Bank of India imposed monetary penalty on 14 banks for violation of rulesThe Reserve Bank of India (RBI)imposed monetary penalties - ranging between Rs 50 lakh to Rs 2 crore,on 14 banks including the State Bank of India (SBI), Punjab and Sind Bank, andBandhan Bank, among others, forcontravention of various regulatory norms, including on lending to non-banking financial companies or NBFCs.
These 14 banks include private banks, public sector banks, co-operative banks,foreign banks, and also a small finance bank.
(Also Read:Reserve Bank Of India Imposes Penalty Of 10 Crore On HDFC 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 central bank said in its statement.Theaction by the RBIis based on the deficiencies in regulatory compliance and will not affect the customer-related activities of any of these banks, such as the validity of any transaction.
The RBI imposed a penalty of Rs 50 lakh on the State Bank of India - the country's largest lender, and Rs 2 crore on Bank of Baroda.A penalty of Rs 1 crore penalty has been imposed each on Bank of Maharashtra, Bandhan Bank, Credit Suisse AG, Central Bank of India, IndusInd Bank, Indian Bank, Karur Vysya Bank, Karnataka Bank, Punjab and Sind Bank, The Jammu - Kashmir Bank, South Indian Bank,and the Utkarsh Small Finance Bank.Here's the full list by RBI along with the amount of monetary penalty imposed on each of the banks:RBI imposes penalty on 14 banksPhoto Credit: Reserve Bank of IndiaThe central bank said that the scrutiny in the accounts of the "companies of a group" was carried out and it was observed that the banks had failed to comply with certain provisions of theBanking Regulation Act, 1949.
RBI then issued noticesissued to the banks, advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions of those provisions.After notices were issued, the RBIreceived replies from the banks and examined the extent of the charges of non-compliance with the provisions of the Banking Regulation Act, before imposing the monetary penalty on the14 banks.