RBI Imposed Monetary Penalties to 14 Banks Including SBI

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• Jul 8, 2021 | moderator

New Delhi: The Reserve Bank of India (RBI) has imposed penalties on fourteen banks including the State Bank of India (SBI) for violations of various rules of RBI.

In the monetary penalty list, the Bank of Baroda hits the highest penalty of Rs 2 crore while SBI has to pay Rs. 50 lakh. Moreover, RBI has imposed a penalty of one crore each on Bandhan Bank Ltd, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd  Bank Ltd, Punjab and Sind Bank, South Indian Bank Ltd, The Jammu and Kashmir Bank Ltd, Utkarsh Small Finance Bank Ltd.

According to the RBI official release, the violence includes non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’, ‘Bank Finance to Non-Banking Financial Companies, ‘Loans and Advances-Statutory and other Restrictions’, ‘Creation of a Central Repository of large Common Exposures- Across bank’s read with the contents of circular on ‘Reporting to Central Repository of Information on Large Credits (CRILC)’.

According to the report, the penalties has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable.

Moreover, the RBI stated in the release “This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers”

Inputs: ANI