RBI Action- RBI has said that action against these banks has been taken on the basis of deficiencies in regulatory compliance.
RBI Action On Bank: Reserve Bank of India (RBI) has now taken action against three banks for violating regulatory compliance. A fine of Rs 2.49 crore has been imposed on these three banks for giving loans against the rules, not following customer service rules and not following the rules related to KY. The banks that have been measured include ESAF Small Finance Bank, Dhanlaxmi Bank and Punjab and Sind Bank.
Reserve Bank of India has imposed a penalty of Rs 1 crore on Punjab and Sind Bank. A fine of Rs 1.20 crore has been imposed on Dhanlaxmi Bank. Similarly, ESAF Small Finance Bank will have to pay a fine of Rs 29.55 lakh. It is noteworthy that recently RBI had also imposed penalty on five cooperative banks of Gujarat.
Why has the Reserve Bank imposed a fine
of Rs 1 crore on Punjab and Sind Bank for giving a loan to a company against the rules? At the same time, Dhanlaxmi Bank did not follow some norms related to statutory and other restrictions, KYC and interest rate on loans and advances. Because of this, a fine of Rs 1.20 crore has been imposed on Dhanlaxmi Bank.
Action has been taken against ESAF Small Finance Bank for non-compliance with the instructions given by RBI on ‘Customer Service in Banks’. A penalty of ₹29.55 lakh has been imposed on the bank. The central bank says that this penalty has been imposed in exercise of the powers given to RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Customers will not be affected.
RBI said in a statement that the action against these banks has been taken on the basis of deficiencies in regulatory compliance and was not intended to affect the validity of any transaction or agreement entered into by the bank with its customers. . The functioning of these banks will not be affected in any way by this action nor will it affect the customers.
