RBI fined 14 banks including SBI, alleging violation of rules

The central bank RBI has imposed fines on 14 banks for violating certain rules related to disbursement of loans. These banks also include the country’s largest State Bank of India (SBI).

The central bank RBI has imposed fines on 14 banks for violating certain rules related to disbursement of loans. These banks also include the country’s largest State Bank of India (SBI). Apart from this, RBI has also imposed penalty on IndusInd Bank, Bandhan Bank and Bank of Baroda. According to the RBI, these banks have violated the provisions of the guidelines set by the central bank for lending to non-banking financial companies (NBFCs). Apart from this, these banks have not followed the provisions related to restrictions and provisions on loans and advances and have been negligent in giving information related to this in the central database. RBI has imposed fines ranging from Rs 50 lakh to Rs 2 crore on these banks. Banks that have been fined include government, private, foreign, co-operative and small finance banks.

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These banks were fined so much

• Rs 2 crore- Bank of Baroda,
• Rs 1 crore – Central Bank of India, IndusInd Bank, Credit Suisse AG, Bandhan Bank, Indian Bank, Bank of Maharashtra, Utkarsh Small Finance Bank, Karur Vysya Bank, Karnataka Bank, Punjab and Sind Bank, Jammu and Kashmir Bank,
• Rs 50 lakh- SBI

There will be no effect on normal transactions and agreements

RBI has imposed the penalty under the provisions of sections 46(4)(i) and 51(1), 47(a)(1)(c) of the Banking Regulation Act, 1949. According to the statement issued by the RBI, when the accounts of a group of companies were scrutinized, it was found that the banks have violated several provisions of the Banking Regulation Act. After this, the RBI issued a notice to the concerned banks, asking why they should not be fined for this. On the basis of the reply sent by the banks on this notice of the central bank, RBI has imposed a penalty on these banks. According to the RBI, this action is related to the violation of regulatory compliance and it will not have any effect on the transactions or agreements related to the customers.