RBI Levies Penalties on Banks and Companies for Breaching Regulatory Rules

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.

About Ravi Khanna

Computer savvy – trained in the use of Microsoft Office; particularly, Word, PowerPoint, Excel, Photoshop, and Final Cut Pro Mastery of many managerial communication skills through University coursework Keep up to date with fashion, food, and lifestyle trends through blogs and twitter Active member and participant in Thysophical Digest Magazine

View all posts by Ravi Khanna →