This penalty has been imposed on the bank for not following the instructions related to ‘Loans and Advances’ and ‘Consumer Protection’. The Reserve Bank of India (RBI) has taken strict action against the Central Bank of India. RBI has imposed a fine of crores of rupees on the Central Bank of India. This fine has been imposed on the bank for not following the instructions related to ‘Loans and Advances’ and ‘Consumer Protection’. This information has been given by the RBI.

According to the report, RBI has imposed a hefty fine of Rs 1.45 crore on the Central Bank of India. RBI had conducted a statutory inspection of the Central Bank of India for its supervisory evaluation (ISE 2022) with reference to its financial position as of March 31, 2022.

Also Read: Cheque bounce case: High Court’s new order regarding cheque bounce, no case will be made in such cases; know the details

Instructions not followed

This public sector bank was issued a notice asking it to explain why it should not be fined for failing to comply with the instructions. After considering the bank’s reply, RBI found that the allegations leveled against the bank were correct. The bank had sanctioned a working capital demand loan to a company in lieu of the amount received from the government in the form of subsidy. Along with this, the bank was also unable to deposit the amount involved in some unauthorized electronic transaction cases in the customers’ account within the stipulated time.

RBI took action

In another statement, RBI said that a fine of Rs 96.4 lakh has been imposed on Sonali Bank PLC for non-compliance of certain norms including KYC Direction, 2016. RBI said that the penalties imposed in both the cases are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.

The post RBI Imposes Penalty: RBI Imposes Rs 1.45 Crore Penalty On Central Bank Of India. Check Here first appeared on Rightsofemployees.com.

RBI Imposes Penalty: Reserve Bank of India (RBI) has imposed a penalty on the largest public sector bank SBI for not following the rules. RBI has also imposed penalty on Canara Bank and City Union Bank.

A fine of about Rs 3 crore has been imposed on these three banks. In the information given by RBI, it was said that a fine of Rs 2 crore has been imposed on SBI for violation of some rules related to ‘Depositor Education Awareness Fund Scheme, 2014’.

Fine imposed on NBFC

The central bank said that a fine of Rs 66 lakh has been imposed on City Union Bank Limited for not following the instructions of RBI related to income certification, property classification and loan related provisions, provisions regarding non-performing loans (NPA) and KYC.

RBI has also imposed a fine of Rs 32.30 lakh on Canara Bank for not following some instructions. A fine of Rs 16 lakh has been imposed on Ocean Capital Market Limited of Rourkela in Odisha for non-compliance of certain provisions related to Non-Banking Financial Companies (NBFC).

What will be the impact on customers?

After this action taken by RBI, it was made clear that the penalty on banks and NBFCs has been imposed for lapses in regulatory compliance. It has nothing to do with the transaction or agreement between the bank and the customers.

From time to time, RBI keeps imposing penalties on banks or NBFCs for not following banking rules. The customers have nothing to do with the fine imposed on the bank. The bank’s customer related work continues as before.

The post RBI imposed a fine of Rs 3 crore on SBI and Canara Bank, what will be the impact on customers? first appeared on Rightsofemployees.com.

RBI said in a statement that this action has been taken on the basis of deficiencies in regulatory compliance. The central bank had conducted a statutory inspection regarding the monitoring investigation in the context of the financial position of the bank as on March 31, 2021. In the context of this investigation, non-compliance of rules came to light.

The bank, in violation of RBI rules, gave wrong information in respect of many expired credit cards with zero balance to all the four ‘credit’ information companies.

Notice sent to the bank

Reserve Bank of India has sent a notice to HSBC asking why penalty should not be imposed on you for violation of the aforesaid provisions of the CIC Rules. However, after this, the notice sent by the RBI was replied to by the bank.

Penalty was required

The Bank, while replying to the RBI notice and making oral submissions during the personal hearing, came to the conclusion that the allegation of violation of the aforesaid CIC Rules was warranted and monetary penalty was warranted.

These banks were also fined

In addition, the central bank has imposed a monetary penalty of Rs 2 lakh on Thrissur Urban Co-operative Bank Ltd., Thrissur, Kerala. Which was for non-adherence to the instructions issued by the central bank on the management of advances. In another statement, RBI said that it has imposed a penalty of Rs 1.25 lakh on hilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh).

The RBI had imposed these penalties on these banks for violation/non-compliance with the provisions of the Banking Regulation Act, 1949 and the Depositor Education and Awareness Fund Scheme, 2014.

The post RBI Imposes Penalty: RBI imposed a fine of 2 crores on this bank, what will be the effect on the account holders first appeared on Rightsofemployees.com.