RBI imposed penalty of Rs 59.20 lakh on South India Bank, it had violated many guidelines

Guidelines are given by RBI for the operation of the bank and if any bank does not follow these guidelines then strict legal action is taken against them. On Friday, RBI has imposed penalty on South Indian Bank for violation of some rules.

Penalty worth lakhs has been imposed on South Indian Bank

According to information received from media reports, a penalty of Rs 59.20 lakh has been imposed on South Indian Bank. This bank is accused of violating the rules of ‘interest rate on deposits’ and ‘customer service in banks’. The bank had deducted the minimum balance/average minimum balance without informing the customers.

All banks are required to follow the guidelines given by RBI. But this bank is accused of violating these rules, after which a heavy fine has been imposed on it. If banks do not follow these rules then they cheat the customers.