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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Maximum interest on 500 days special FD

While the bank is giving 3.15% to 6.50% interest to its senior citizen customers on the same time period. On the other hand, the bank is paying a maximum interest of 7.40% on special FDs of 500 days (SIB 94 Plus) to its general customers. While the bank is giving a maximum interest of 7.50% on FD of 1 year 1 day to its senior citizen customers. According to the information received from the official website of the bank, the increased new interest rates will be applicable from January 29.

Increased new FD rates of the bank After the increase in the interest rate, the bank will give its customers 2.65% on FDs of 7 days to 30 days, 3.25% on FDs of 31 days to 90 days, 4.50% on FDs of 91 days to 99 days and Will pay 5.50% interest on 100 days FD.At the same time, the bank will pay 4.25% on FDs of 101 days to 180 days, 4.60% on FDs of 181 days to less than 1 year, 6.60% on 1 year FDs and 7% on FDs of 1 year and 1 day.

On the other hand, the bank is getting 7.40% interest on FDs ranging from 1 year 2 days to 499 days, 6.50% on FDs of 500 days, 7.40% on FDs of 501 days to less than 30 months, 6.50% on FDs of 501 days to less than 30 months. 7% on FD, 6.50% on FD from 30 months to less than 5 years, 6% on FD from 5 years to less than 66 months, 6.50% on FD of 66 months and FD from 66 months to 10 years But will give interest of 6%.

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