RBI’s big action! RBI imposed fine on PNB and Federal Bank, What will be the impact on customers?

New Delhi. The Reserve Bank of India (RBI) keeps an eye on the functioning of all the banks in the country.

Whenever a bank ignores RBI rules and does its own thing, the central bank can impose a fine on it. In this series, RBI has imposed penalty on Punjab National Bank (PNB), Federal Bank, Mercedes Benz Financial Services India Private Limited and Kosamattam Finance Limited, Kottayam. This action has been taken due to non-compliance of rules.

RBI said on Friday that it has imposed a penalty of Rs 72 lakh on PNB and Rs 30 lakh on Federal Bank. The central bank has imposed a fine of Rs 10 lakh on Mercedes Benz Financial Services India Pvt Ltd (formerly known as Daimler Financial Services India Pvt Ltd) for non-compliance with certain provisions of its Know Your Customer (KYC) Directive, 2016. Fine has also been imposed.

RBI also said that Kosamattam Finance Limited, Kottayam has been fined for non-compliance with certain provisions of the ‘Non-Banking Financial Companies – Systemically Important Non-Deposit Taking Companies and Deposit Taking Companies (Reserve Bank) Directions, 2016’. A fine of Rs 13.38 lakh has been imposed.