The Reserve Bank of India has fined 14 banks for breaking rules

The Reserve Bank of India has imposed penalties on 14 banks for failing to follow key requirements of RBI directives. The RBI conducted an examination of the accounts of a group of enterprises. It was discovered that the banks had failed to follow the provisions of one or more RBI directives and/or had broken the Banking Regulation Act of 1949.Banks were served with notices requiring them to show cause why a penalty should not be levied for non-compliance with the Banking Regulation Act, 1949’s directions/provisions. After considering the responses, the RBI determined that sanctions against the aforementioned fourteen institutions were merited.

Names of the banks:

Bandhan Bank Ltd.
Bank of Baroda
Bank of Maharashtra
Central Bank of India
Credit Suisse AG
Indian Bank
IndusInd Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Punjab and Sind Bank
South Indian Bank Ltd.
State Bank of India
The Jammu & Kashmir Bank Ltd. Utkarsh Small Finance Bank Ltd.

Non-compliance with various sections of directives issued on ‘Lending to Non-Banking Financial Companies (NBFCs)’, ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’, and ‘Loans and Advances – Statutory and Other Restrictions,’ according to the RBI in a statement. As per updates, the RBI penalties on these banks are mainly linked to banks’ dealings with crisis-ridden Dewan Housing Finance Corporation (DHFL) and its group companies.

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