Business News Desk: RBI on Friday said that it has imposed a penalty of Rs 59.20 lakh on South Indian Bank for non-compliance of rules on interest rates on deposits and customer service in banks. An inspection was conducted by the Reserve Bank for supervisory evaluation of the bank with reference to the financial position of the bank as on March 31, 2023.
Notice was issued to South Indian Bank Limited on the basis of supervisory findings of non-compliance of RBI instructions and related rules.
After considering the bank’s response to the notice and the oral submissions made during the personal hearing, RBI found that the allegations against the bank were true and warranted imposition of penalty.
RBI said that the bank imposed penalty on some customers for not maintaining minimum balance/average minimum balance without informing them through SMS/e-mail or letter. RBI said that South Indian Bank has imposed lien marking on some NRE savings deposit accounts.
