Reserve Bank of India: RBI has imposed a fine of Rs 2 crore on the country’s largest public sector bank SBI for not following the rules. Even before this, action has been taken by RBI against State Bank.
RBI Imposes Penalty: Reserve Bank of India (RBI) has imposed a penalty on the largest public sector bank SBI for not following the rules. RBI has also imposed penalty on Canara Bank and City Union Bank.
A fine of about Rs 3 crore has been imposed on these three banks. In the information given by RBI, it was said that a fine of Rs 2 crore has been imposed on SBI for violation of some rules related to ‘Depositor Education Awareness Fund Scheme, 2014’.
Fine imposed on NBFC
The central bank said that a fine of Rs 66 lakh has been imposed on City Union Bank Limited for not following the instructions of RBI related to income certification, property classification and loan related provisions, provisions regarding non-performing loans (NPA) and KYC.
RBI has also imposed a fine of Rs 32.30 lakh on Canara Bank for not following some instructions. A fine of Rs 16 lakh has been imposed on Ocean Capital Market Limited of Rourkela in Odisha for non-compliance of certain provisions related to Non-Banking Financial Companies (NBFC).
What will be the impact on customers?
After this action taken by RBI, it was made clear that the penalty on banks and NBFCs has been imposed for lapses in regulatory compliance. It has nothing to do with the transaction or agreement between the bank and the customers.
From time to time, RBI keeps imposing penalties on banks or NBFCs for not following banking rules. The customers have nothing to do with the fine imposed on the bank. The bank’s customer related work continues as before.
