New Delhi: The Reserve Bank has imposed penalties on three state-owned banks, due to violation of several regulatory norms, including SBI and Indian Bank.
The State Bank of India has been fined a penalty of Rs 1.3 crore, citing non-compliance with certain directions as the issue. According to a statement released by RBI, these directions include ‘Loans and Advances Statutory and Other Restrictions’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures’.
In a separate statement, the RBI informed that Indian Bank has been imposed with a fine of Rs. 1.62 crore. Reasons cited for this imposition were contravention of certain directions on ‘Loans and Advances Statutory and Other Restrictions’, KYC, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
The third bank that has been imposed with a monetary penalty is Punjab and Sind Bank, due to non-compliance with some provisions of the depositor education and awareness fund scheme.
Feedback Financial Services Limited have been imposed with a penalty of Rs. 8.80 lakh by the RBI, citing non-compliance with certain provisions of the directions on monitoring fraud in Non-Banking Financial Corporations (NBFC) as the reason.
The RBI, however, emphasised that the fines imposed on banks and NBFCs are a result of their failure to meet regulatory requirements and do not serve as a judgment on whether any of their dealings or agreements with customers are valid or not.
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