The Reserve Bank of India (RBI) disclosed on Friday that it has imposed monetary sanctions on several financial institutions for breaching the central bank’s regulatory guidelines. The penalties encompass a fine of Rs 72 lakh on one bank, Rs 30 lakh on another, Rs 13.38 lakh on a third, and Rs 10 lakh on a fourth, as elaborated in an RBI statement.
Punjab National Bank incurred the penalty for a range of violations, including imposing SMS charges on specific accounts despite having incorrect mobile numbers in the Core Banking Solution, deviating from the pre-disclosed interest rate schedules in multiple term deposit accounts, and failing to specify the interest reset date in MCLR-linked loans.
Federal Bank faced sanctions for issuing demand drafts of Rs 50,000 and above without including the purchaser’s name on the drafts.
Kosamattam Finance received a penalty for failing to maintain a loan-to-value ratio of 75 per cent in certain loan accounts.
Mercedes-Benz Financial Services India was fined for inadequate due diligence on its customers and for not updating Know Your Customer (KYC) information for high-risk clients.