The Reserve Bank of India has imposed penalties on numerous banks such as State Bank of India, Fed Bank Financial Services, Punjab Sind Bank and Indian Bank for violating the guidelines and policies laid down by the Reserve Bank of India.
State Bank of India (SBI) has to pay a penalty of Rs 1.Three crore, Indian Bank Rs 1.Sixty two crore, Punjab Sind Bank Rs 1 crore and Fed Bank Financial Services Rs 8.80 lakh.
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The Reserve Bank of India (RBI) is the primary financial institution of India. It began in 1935 and could be very critical for the banking and financial device of India. It ensures that central banks follow rules, arranges forex balance, manages the Indian rupee, and facilitates banks when they get into hassle. RBI is founded in Mumbai and ensures the safety and efficiency of India’s financial and banking system.
RBI impose 1.3 Crore penalty on State Bank of India
SBI and Indian Bank were fined because they extended long-term loans to a company without using the fixed amount for certain projects. Whether these projects can generate sufficient funds to cover their costs and expenses has not been thoroughly examined. This led the RBI to impose these penalties.
State Bank of India (SBI) has been fined for non-compliance with the lending limit norms in its group of companies. In calculating this limit, he does not even consider the amount of money his group company was allowed to spend on the same day.
RBI impose 1.62 Crore penalty on Indian banks – Why bank penalties?
Indian Bank has been penalized for not using the one-time password (OTP) method to open accounts without meeting the customers in person, and is known as e-KYC activity. These accounts were opened for over a year without accepting checks and were required to obtain KYC. A savings account was also opened for those who could not pay their deposits.
RBI impose 1 Crore penalty on Punjab and Sind Bank: Why bank penalties?
The RBI fined Punjab and Sind Bank Rs 1 Crore for not keeping adequate balances in the accounts that help educate depositors in time, as prescribed under Section 26A of the BR Act. due to which the monetary penalty was imposed.
RBI impose 8.80 Lakh penalty for Fed Bank financial Services: Why bank penalties?
Fed Bank Financial Services was fined Rs 8.80 lakh for failing to report the fraud to the RBI in time. RBI took note of this and asked them to explain why they should not be penalized for not following RBI rules. Taking note of that, the RBI decided to impose monetary penalty.
