RBI Imposes Penalty: The Reserve Bank of India (RBI) has tightened the noose on a public sector bank. The Central Reserve Bank (RBI) has imposed a penalty of Rs 70 lakh on Bank of India, while Rs 5.72 crore on Federal Bank. RBI said that this action has been taken on behalf of the bank due to non-compliance of some provisions of ‘Know Your Customer’ ie KYC norms and instructions in ‘regulatory compliance’.
Why was Bank of India fined?
According to information provided by RBI, Bank of India has imposed a fine of Rs 70 lakh on Bank of India for non-compliance with certain provisions of its ‘Know Customer’ (KYC) norms and instructions in ‘regulatory compliance’. fined. In another statement, RBI said that Gurugram-based Dhani Loans and Services Limited has also been fined Rs 7.6 lakh for non-compliance of KYC norms.
Why was Federal Bank fined?
According to the information provided by RBI, Federal Bank could not ensure whether any incentive (cash or non-cash) was given by the insurance company to its employees engaged in insurance broking/corporate agency services. In fact, RBI had conducted statutory inspection for Monitoring Assessment (ISE) with reference to the financial position of the bank till March 31, 2020.
This bank was also fined!
Apart from this, the Reserve Bank also imposed several restrictions on the New Delhi-based Ramgarhia Co-operative Bank in view of the deteriorating financial condition of the lender. At present, the RBI has imposed a limit of Rs 50,000 per depositor withdrawal under another restriction. Along with this, the bank is also not allowed to grant or renew any loan, invest or accept fresh deposits without the prior approval of RBI.