MUMBAI: The Reserve Bank of India (RBI) announced on Friday that it has imposed monetary penalties on several financial institutions for violating the central bank's regulations. The penalties include a fine of Rs 72 lakh on one bank, Rs 30 lakh on another, Rs 13.38 lakh on yet another, and Rs 10 lakh on a fourth, as detailed in an RBI statement.
Punjab National Bank incurred the fine for various violations, such as charging SMS fees on certain accounts despite having incorrect mobile numbers in the Core Banking Solution, deviating from pre-disclosed interest rate schedules in numerous term deposit accounts, and failing to specify the interest reset date in MCLR-linked loans.
Federal Bank faced penalties for issuing demand drafts of Rs 50,000 and above without including the purchaser's name on the drafts.
Kosamattam Finance was penalized for not maintaining a loan-to-value ratio of 75 per cent in certain loan accounts.
Mercedes-Benz Financial Services India was fined for failing to conduct proper due diligence on its customers and for not updating Know Your Customer (KYC) information for high-risk customers.