In this sequence, now RBI has imposed a fine of Rs 59.20 lakh on South Indian Bank for not following some instructions related to ‘interest rate on deposits’ and ‘customer service in banks’. On March 31, 2023, a statutory inquiry was conducted by the Reserve Bank for the supervisory assessment of the bank regarding the financial position of the bank.

RBI found the allegations against the bank to be true

The bank gave information about this on Friday. The central bank had issued a notice to South Indian Bank Limited for not following RBI’s instructions and related correspondence. After considering the bank’s reply to the notice and the oral presentation given during the personal hearing, RBI found that the allegations against the bank were correct. After this, it was decided to impose a penalty on the bank. Earlier also, RBI had imposed penalty on many banks while the license of some was cancelled.

SBI and HDFC were also fined.

RBI said that the bank has imposed penalty for not maintaining minimum balance / average balance without informing some customers through SMS / e-mail or letter. RBI said that this penalty is based on deficiencies in statutory and regulatory compliance and is not intended to affect the validity of any transaction or agreement made by the bank with its customers. Earlier, RBI has also imposed fine on SBI, PNB, ICICI and HDFC Bank for not following the rules.

What will be the impact on customers?

Even before this, many different banks have been fined by the Reserve Bank for not following the rules. But let us tell you that such fines imposed by RBI on banks do not affect the customers. The transactions of customers with the bank continue smoothly as before. Nor does it have any effect on the benefits given to the customers by the bank.

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The post RBI Penalty on Bank: RBI imposed a heavy fine on this bank, what will be the impact on the customers? first appeared on Rightsofemployees.com.

The importance of the Reserve Bank for the common man can be understood from a recent case. Seeing the common man being harmed by the arbitrariness of 2 private sector banks, RBI took action and imposed a fine of about 2 crore rupees. A penalty of 1 crore has been imposed on one bank and 91 lakh rupees on the other. You will also be surprised to know the arbitrariness of both the banks. On one hand, these banks were charging arbitrary fees from the common man citing the rules and on the other hand, they were distributing loans to companies by breaking the rules.

According to the release issued by the Reserve Bank, RBI has imposed a fine of Rs 1 crore on ICICI, a big private sector bank. At the same time, a penalty of Rs 91 lakh has been imposed on Yes Bank. Both the banks had violated the notification and regulation issued by RBI on March 31, 2022.

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What mistake did ICICI Bank commit?

In its audit, the Reserve Bank found that ICICI Bank did not follow the rules while giving loans. The bank gave loans to some institutions or companies without proper investigation. The projects of these companies were not eligible to get sufficient loan, yet the bank gave the money. This put the loan at risk and the Reserve Bank imposed a fine of Rs 1 crore for breaking the rules.

Yes Bank has played a game.

Yes Bank, which was on the verge of bankruptcy a few days ago, saved itself from the interference of the government and RBI, then it started charging arbitrary fees from the common man. RBI found in its audit that Yes Bank charged arbitrary fees from customers in the name of not having minimum balance. This fee was charged in the name of parking fund and customer transaction. RBI considered it against the rules and imposed a fine of Rs 91 lakh on the bank.

What does RBI’s rule say?

The Reserve Bank has clearly stated in the matter of loans that unless the applicant is fully eligible and does not provide any collateral for the risky loan, the loan should not be approved. Similarly, RBI has made clear rules regarding minimum balance and apart from this, banks cannot charge arbitrary fees from customers for any service.

The post RBI Penalty on Bank: RBI Imposes Significant Penalties on ICICI Bank and Yes Bank first appeared on Rightsofemployees.com.