RBI imposes monetary penalties on two Indian banks and a NBFC for non-compliance!
RBI has imposed monetary penalties on two Indian banks and one NBFC for non-compliance
RBI imposes monetary penalties on two Indian banks and a NBFC for non-compliance
The Reserve Bank of India (RBI) has imposed monetary penalties on two Indian banks and one non-banking financial company (NBFC) for non-compliance with certain regulatory requirements.
- Punjab National Bank has been fined Rs 72 lakh for the following violations:
- Levying SMS charges on certain accounts despite maintaining junk mobile numbers in the Core Banking Solution (CBS)
- Failing to pay interest rates strictly as per the schedule of interest rates disclosed in advance in several term deposit accounts
- Failing to specify the interest reset date in MCLR-linked loans.
- Federal Bank Ltd. has been fined Rs 30 lakh for issuing some demand drafts, each for a value of Rs 50,000 and above, without incorporating the name of the purchaser on the face of the draft.
- Kosamattam Finance Limited has been fined Rs 13.38 lakh for the following violations:
- Failing to submit credit information pertaining to gold loan accounts to Credit Information Companies.
- Failing to maintain an LTV ratio of 75 per cent in certain loan accounts during the financial year 2021-22.
The RBI's crackdown on financial institutions for non-compliance is a welcome step. It shows that the central bank is serious about protecting consumers and ensuring that the financial system is fair and transparent.
The penalties imposed on these banks and one NBFC are significant and should serve as a deterrent to other financial institutions. The RBI's actions are a reminder that all financial institutions must comply with regulations and put the interests of their customers first.
Disclaimer: The article is for informational purposes only and not investment advice.