The Reserve Bank Of India (RBI) has imposed a monetary penalty on J&K Bank, Axis Bank, and Bank of Maharashtra for violating rules. The central bank charged Rs.2.5 corer penalty on J&K Bank whereas Bank of Maharashtra has to pay.1.45 corer. Axis Bank has to pay Rs.30 lakh penalty which is the least amount.

The penalties are based on deficiencies in regulatory compliance issues and are not intended to not meant to judge the legality of any deal that the firm made with their clients.

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J&K Bank failed the RBI examination of non-compliance in-

Failed to ensure the integrity and quality of the data submitted to CRILC's central repository of information on large credits.

Extended the loan's terms to cooperation without conducting due diligence on the viability and bankability of the projects to ensure that revenue streams from the project are sufficient to take care of the debt servicing obligations and failed to ensure that repayment of term loans was not made out of budgetary resources.

Created financial and non-financial messages in SWIFT without first ensuring that the underlying transaction have been duly reflected in the CBS.

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Axis Bank is the third largest private bank in India. It has charged a monetary penalty of Rs30 lakh. By the RBI for non-compliance with certain provisions of the RBI direction on Prudential Norms on Income Recognition, Asset Clarification, and provision about advance-Credit Card accounts.

As per the RBI examination, Aix Bank had charged certain accounts for the late due payment of the credit card but the customer had paid the dues on the given date by a third-party platform.

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Bank of Maharashtra government-owned bank charged an Rs1.45 corer penalty for Breaching RBI’s Directives on loans and ATMs.

Bank of Maharashtra committed non-compliance in

It approved a term loan to cooperate in place of or a substitute for budgetary resources anticipated for certain projects.

Without conducting due diligence on the variability and bankability of the project to ensure the revenue stream from the project were sufficient to cover the debt servicing obligation. Whose repayment was funded by budgetary resources.

It failed to implement proper control measures for ATM’s relating end to end encryption of communication between the ATM terminal and the ATM Switch within the prescribed timeline.

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