Mumbai: Reserve Bank of India (RBI) on Wednesday said he had imposed a penalty in SBI, Bank of Baroda, Bank Indusind, Bank Bandhan and 10 other lenders to conflict with various regulatory norms, including loans to NBFC.
The punishment imposed on 14 banks total Rs 14.5 Crore, with good RS 2 Crore Fine at the Bank of Baroda.
In accordance with release, RS 1 Crore’s penalty has been enacted by each at Bank Bandhan, Bank of Maharashtra, Central Bank of India, Credit Suisse Ag, Bank India, Bank Indusind, Bank Karnataka, Karur Vysya Bank, Punjab and Sind Bank, South India Bank , Bank Jammu & Kashmir, and Small Utkarsh Financial Bank.
The punishment worn at the Indian state bank is Rs 50 Lakh.
Providing details, bank reserves of India said supervision in the “company of a group” account was carried out and observed that banks failed to comply with certain conditions.
Notifications issued to the bank, advise them to show the reason why penalties should not be charged for non-compliance with the direction / causes of banking regulations, 1949.
Punishment has been imposed on the non-compliance of certain provisions from the direction issued by the RBI about ‘loans to non-financial companies – Save (NBFCS) ‘,’ Financial Banks for non-banking financial companies (NBFCs), ‘loans and progress – statutory and’ restrictions’, and ‘of the repository of large general exposure – throughout the bank’, among others.
RBI, however, said punishment had been enacted based on deficiency in regulatory compliance and was not intended to be pronounced on the validity of each transaction or agreement entered by customers with their customers.
RBI imposes a penalty in 14 banks to conflict with the norm
