RBI Penalty on South Indian Bank: If you are also a customer of South Indian Bank, then you must be aware of this news. Yes, the Reserve Bank of India (RBI) keeps imposing fines on banks from time to time for not following the rules.
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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