The penalty imposed amounts to a total of Rs 14.5 crore with a maximum 2 crore fine on Bank Of Baroda.
The Reserve Bank of India (RBI) imposed monetary penalties on the State Bank of India (SBI), Bank of Baroda, and 12 other banks on Wednesday for non-compliance with various directions issued by the central bank and contraventions of certain provisions of the Banking Regulation Act.
The penalty imposed amounts to a total of Rs 14.5 crore with a maximum 2 crore fine on Bank Of Baroda.
Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank and Utkarsh Small Finance Bank were fined Rs 1 crore each. A penalty of Rs 50 lakh was imposed on SBI.
The central bank said that during the scrutiny in the accounts of the companies of a Group, it observed that the 14 banks had failed to comply with provisions of one or more of the directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949.
Consequently, the RBI had issued notice 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.
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“The replies received from the banks, oral submissions made in the personal hearings, wherever sought by the banks, and examination of additional submissions, where made, were duly considered, and to the extent the charges of non-compliance with RBI directions/ contraventions of provisions of Banking Regulation Act, 1949 were sustained, RBI concluded that it warranted imposition of monetary penalty on aforementioned fourteen banks,” the central bank said in a release, Business Today reported.
The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable.
“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers,” the release said.
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