RBI imposes penalties on 14 banks:
The Reserve Bank of India has imposed penalties of about INR 4.5 Crores on 14 different banks for non-compliance with certain provisions issued by the RBI.
It must be noted that an inspection of the companies accounts was carried out by the RBI recently and it was obtained that the provisions of one or more provisions issued by RBI and contravened provisions of the Banking Regulation Act, 1949 haven’t been complied with by the banks.
Moreover, show cause notices were issued to the banks asking them to show why a penalty shall not be imposed for non-compliance with the directions or contraventions of provisions of the Banking Regulation Act, 1949.
After considering the replies by the banks, RBI stated that it warned the imposition of penalties on the banks for such an act.
Bank of Baroda, which has been levied with the highest penalty of INR 2 crores.
Bandhan Bank Ltd. has been levied with a penalty of INR 1 crore.
Bank of Maharashtra
Central Bank of India
Credit Suisse AG
IndusInd Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Punjab and Sind Bank
South Indian Bank Ltd.
State Bank of India has been levied with a penalty of Rs. 50 lakhs
The Jammu and Kashmir Bank Ltd.
Utkarsh Small Finance Bank Ltd.
The RBI also stated that the penalties have been imposed on these banks for the non-compliance with the provisions issued, and shall have no relation to the transactions of the customers.