4 Bank Penalty Update: This action comes at a time when the RBI is constantly monitoring banks amid growing concerns about digital banking, cyber security and customer protection. This clearly indicates that any kind of laxity will not be tolerated by financial institutions in following the rules.
The Reserve Bank of India (RBI) has imposed a fine of millions of rupees on four major banks of the country due to lapses in regulatory compliance. In official statements issued on Friday, the central bank said that this action does not affect the validity of transactions related to customers, but it is only based on the disregard of regulatory instructions.
ICICI Bank fined ₹97.80 lakh
RBI has imposed a fine of ₹97.80 lakh on private sector ICICI Bank. This fine has been imposed due to violation of cyber security framework, Know Your Customer (KYC) norms and guidelines related to issuance of credit and debit cards by the bank. Apart from this, a fine of ₹61.40 lakh has been imposed on public sector Bank of Baroda. According to RBI, this fine has been imposed due to failure to comply with regulatory instructions in the matter of banking services and services being provided to customers.
IDBI Bank also came under siege
In the same sequence, IDBI Bank Limited and Bank of Maharashtra have also been fined ₹ 31.80 lakh each. This action has been taken against both the banks due to deficiencies found in regulatory compliance. RBI clarified that this punitive action is not against any particular customer or transaction of the concerned banks, but its purpose is to warn the banks to ensure full compliance with regulatory instructions in future.
Experts believe that this step is part of RBI’s policy of transparency and strict enforcement of rules, which aims to maintain discipline in the banking system and ensure customer safety. This action has come at a time when RBI is constantly monitoring banks amid growing concerns about digital banking, cyber security and customer protection. This clearly indicates that any kind of laxity will not be tolerated by financial institutions in following the rules.
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