New Delhi: The Reserve Bank of India (RBI) has imposed a fine of ₹1 crore on ICICI Bank as it failed to comply with its guidelines on ‘Loans and Advances – Statutory and Other Restrictions.’ An inspection was held on March 31, 2022, which revealed that the bank had approved loans without proper checks, using funds meant for specific projects. This penalty means regulatory compliances were not followed, it does not deny the validity of the transactions with customers.
Yes Bank was fined ₹91 lakh by the RBI for non-compliance with directions on ‘Customer Service in Banks’ and ‘Unauthorised Operation of Internal/Office Accounts.’ The bank charged fees on some savings accounts with low or zero balance and for using customer accounts for unauthorised purposes, like holding funds temporarily and moving money around.
These fines were charged after the RBI asked the two banks for an explanation as to why they shouldn’t be penalised for non-compliance. After reviewing the bank’s response, oral submissions, and additional information, the RBI confirmed the violations.
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