The Reserve Bank of India (RBI) has fined two banks for violating rules. According to the information, a fine of Rs 63.6 lakh has been imposed on DCB Bank and Rs 1.31 crore on Tamil Nadu Mercantile Bank by RBI.
Why were both fined?
News agency PTI reported that this penalty has been imposed on DCB Bank and Tamil Nadu Mercantile Bank for not following some instructions related to interest rate on advances. However, this penalty has been imposed on banks and will not have any impact on customers.
RBI issued statement
In a statement issued by the Reserve Bank, it was said that a monetary penalty of Rs 63.6 lakh has been imposed on DCB Bank. In a separate statement, the central bank said that Tamil Nadu Mercantile Bank has been fined Rs 1.31 crore for non-compliance of certain instructions issued on ‘Interest Rates on Advances’ and ‘Revision in Central Repository of Information on Large Credit (CRILC) Reporting’. Fine has been imposed. In both cases, the Reserve Bank said the penalty was based on deficiencies in regulatory compliance and is not intended to affect the validity of any transactions or agreements entered into with their customers.
Even before this, fines were imposed on many banks
From time to time, RBI has been imposing fines on banks for violating rules. A few days ago, a fine of Rs 1.4 crore was imposed on Bank of India by the central bank. Apart from this, a fine of Rs 29.55 lakh was also imposed on Bandhan Bank for non-compliance with the rules. Apart from this, a fine of Rs 13.60 lakh was imposed by the bank on NBFC company Indostar Capital Finance Limited.
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