The Reserve Bank of India (RBI) has imposed fines ranging from Rs 50 lakh to Rs 1 crore on 14 banks. It has both private and government banks. This fine has been imposed for not following the rules.
14.5 crore penalty on 14 banks
A total penalty of Rs 14.5 crore has been imposed on all these 14 banks, out of which the biggest penalty of Rs 2 crore has been imposed on Bank of Baroda. This is followed by Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab & Sind Bank, South Indian Bank, The Jammu and Kashmir Bank with a penalty of Rs 1 crore and Utkarsh Small Finance Bank. The smallest penalty of Rs 50 lakh is levied on the country’s largest bank State Bank of India.
Reserve Bank issued order
On Wednesday, the Reserve Bank issued such an order. According to this order, a fine of Rs 50 lakh has been imposed on the country’s largest bank State Bank of India (SBI). Bank of Baroda has been fined Rs 2 crore. IndusInd, Credit Suisse, Central Bank of India, Bank of Maharashtra, Indian Bank, Utkarsh Small Finance Bank have been charged Rs 1 crore each.
25 lakh fine on Punjab and Sindh
The day before yesterday a fine of Rs 25 lakh was imposed on Punjab and Sind Bank. The Reserve Bank said that these banks did not comply with all the provisions of its orders. This provision pertained to lending to non-banking institutions. In fact, banks had not disclosed the details of accounts with large loans in the central database. Also, they did not follow the rules of loan and advance.
Will not affect customers
The Reserve Bank has said that the rules related to Central Repository of Large Common Exposures, Central Repository of Information on Large Credits (CRILC) reporting in banks, operating guidelines of Small Finance Bank have been ignored. Along with this, banks have violated section 19(2) and section 20(1) of the Banking Regulation Act, 1949. Although the Reserve Bank has made it clear that this penalty has been imposed on banks for lack of regulatory compliance, it has nothing to do with any transaction of customers.