NEW DELHI: Reserve Bank of India I has imposed monetary penalties on 14 banks on account of non-compliance with certain provisions. The penalty imposed on the 14 banks totals Rs 14.5 crore, with a maximum Rs 2 crore fine on Bank of Baroda.
According to a press release statement, Rs 1 crore penalty has been imposed each on Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank, and Utkarsh Small Finance Bank.
These banks were penalised for non-compliance with certain provisions of directions issued by the RBI on Lending to Non-Banking Financial Companies, Bank Finance to Non-Banking Financial Companies, Loans and Advances - Statutory and Other Restrictions, amongst other norms. Notices were issued to the banks, advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions/contraventions of provisions of the Banking Regulation Act, 1949.
The RBI, however, said penalties have been imposed based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
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