The Reserve Bank of India (RBI) on Wednesday (7 July 2021) announced that it has imposed monetary penalty on 14 banks for flouting provisions of directions issued.
In a notification, RBI said it has imposed penalties on fourteen banks for non-compliance with certain provisions of directions issued by RBI on 'lending to non-banking financial companies (NBFCs)', 'bank finance to NBFCs', 'loans and advances - statutory and other restrictions', 'creation of a central repository of large common exposures - across banks', 'operating guidelines for small finance banks' and for contraventions of provisions of Section 19 (2) and Section 20 (1) of Banking Regulation Act, 1949.A scrutiny in the accounts of the companies of a Group was carried out by RBI and it was observed that the banks had failed to comply with provisions of one or more of the aforesaid directions issued by RBI and/or contravened provisions. Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions/contraventions of provisions of Banking Regulation Act, 1949.
Replies were considered, and the RBI concluded that it warranted imposition of penalties on the aforementioned fourteen banks.
Bandhan Bank (down 0.27%), Bank of Baroda (down 0.75%), Bank of Maharashtra (down 0.01%), Central Bank of India (down 0.56%), Indian Bank (up 0.43%), IndusInd Bank (up 1.06%), Karnataka Bank (up 0.4%), Karur Vyasa Bank (up 0.2%), Punjab & Sindh Bank (down 1.21%), Punjab National Bank (down 0.24%), South Indian Bank (up 0.55%), SBI (down 0.68%), Jammu & Kashmir Bank (down 0.25%), Utkarsh Small Finance Bank and Credit Suisse AG are banks on which penalty have been imposed.
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