RBI Penalty on Banks: RBI has once again become strict on banks. The Reserve Bank monitors all the banks of the country… which bank is following the rules properly or not…? Now RBI has imposed a penalty on DCB Bank and Tamilnad Mercantile Bank for not following some instructions related to advance interest rate.

This has been informed by issuing a statement from RBI. RBI has imposed a fine of Rs 63.6 lakh on DCB Bank. Apart from this, a fine of Rs 1.31 crore has been imposed on Tamil Nadu Mercantile Bank.

RBI issued statement

In a separate statement, the central bank said that Tamil Nadu Mercantile Bank has been fined Rs 1.31 crore for non-compliance of certain instructions issued on ‘Interest Rates on Advances’ and ‘Revision in Central Repository of Information on Large Credit (CRILC) Reporting’. Fine has been imposed.

Fine imposed for not following rules

In both cases, the Reserve Bank said the penalty was based on deficiencies in regulatory compliance. For this reason RBI has taken this action. RBI’s objective is not to affect the validity of any transaction or agreement entered into with bank customers.

Fine was also imposed on these banks

Recently the Reserve Bank had imposed penalty on Bank of India and Bandhan Bank. RBI had imposed a fine of Rs 1.4 crore on Bank of India. Apart from this, the Reserve Bank had also imposed a fine of Rs 29.55 lakh on private sector Bandhan Bank for not complying with some instructions.

Reserve Bank of India has imposed penalty on Bank of India for non-compliance of RBI directions relating to violation of provisions of ‘Interest Rate on Deposits’, ‘Customer Service in Banks’, ‘Interest Rate on Loans’ and Credit Information Companies Rules, 2006. Was imposed for.

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Penalty on Banks: Reserve Bank of India (RBI) has taken strict action against banks and co-operative banks violating the rules. RBI has imposed financial penalty on three co-operative banks including HDFC Bank, Bank of America. Central bank RBI has also issued show cause notice to all of them. This is the second action taken by RBI on banks and co-operatives in a week.

Both banks were fined Rs 10,000

HDFC Bank and Bank of America have been fined Rs 10,000 each. Both these banks were violating the rules of depositing money from Non-Resident Indians (NRIs). According to RBI, both the banks were not following the FEMA law properly. If proper response to the notice is not received, fine will be charged from them.

Three co-operative banks also measured

Three cooperative banks have also come under the ambit of RBI action. Among these, a fine of Rs 1 lakh has been imposed on Dhrangadhra People’s Co-operative Bank of Gujarat. The bank is accused of not properly following the rules related to deposits. Apart from this, a fine of Rs 1.5 lakh has been imposed on Mandal Nagrik Co-operative Bank of Ahmedabad and Rs 1.5 lakh on Patliputra Central Co-operative Bank of Bihar. The Central Bank has been continuously taking strict action against banks and co-operative banks for some time now.

Last week action was taken on 3 banks and 5 co-operatives

About a week ago, RBI had imposed a fine of more than Rs 10 crore on three banks violating the rules. Besides, action was also taken against 5 co-operative banks. The central bank had imposed a fine of Rs 5 crore on Citi Bank, Rs 4.34 crore on Bank of Baroda and Rs 1 crore on Indian Overseas Bank. The Reserve Bank had imposed a fine for not following the guidelines properly.

RBI had also imposed fine on 5 cooperative banks which were violating various rules. These include Shri Mahila Seva Cooperative Bank, Porbandar Departmental Citizens Cooperative Bank, Sarvodaya Citizens Cooperative Bank, Khambhat Citizens Cooperative Bank and Vejalpur Citizens Cooperative Bank. A fine ranging from Rs 25 thousand to Rs 2.5 lakh was imposed on them. These fines have no impact on customers.

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Besides, RBI has also taken action against 5 cooperative banks. The central bank has imposed the maximum fine of Rs 5 crore on Citi Bank, Rs 4.34 crore on Bank of Baroda and Rs 1 crore on Indian Overseas Bank.

Why did action have to be taken?

The highest penalty has been imposed on private sector Citibank. This bank is accused of violating the Banking Regulation Act. Also, it is not following RBI guidelines for risk management and outsourcing of financial services. Bank of Baroda is accused of violating rules related to setting up the Central Repository of Large Common Exposures. On the other hand, Chennai-based public sector Indian Overseas Bank has been found guilty of not following the rules of loan and advance.

Customers will not be affected

The Reserve Bank clarified that the penalty has been imposed on these three banks for not following the guidelines properly. Its purpose is not to question the validity of any transaction or agreement entered into with banks and their customers. RBI has issued show cause notices to these banks. In this he has been asked to give clarification to avoid fine.

Five cooperative banks also measured

Earlier, RBI had imposed penalty on 5 cooperative banks violating various rules. These include Shri Mahila Seva Cooperative Bank, Porbandar Departmental Citizens Cooperative Bank, Sarvodaya Citizens Cooperative Bank, Khambhat Citizens Cooperative Bank and Vejalpur Citizens Cooperative Bank. A fine ranging from Rs 25 thousand to Rs 2.5 lakh has been imposed on them.

Took control of Abhyudaya Cooperative Bank in his hands

The Reserve Bank on Friday announced to supersede the board of Abhyudaya Cooperative Bank for the next one year. However, no restrictions have been imposed on the business of the bank. The Central Bank has appointed former Chief General Manager of State Bank of India, Satya Prakash Pathak, as the Administrator of Abhyudaya Cooperative Bank. Besides, a committee of advisors has also been appointed. The Reserve Bank says that due to the poor standards of governance of Abhyudaya Cooperative Bank, it has been forced to take action.

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