India’s central bank i.e. Reserve Bank of India has imposed a hefty fine of Rs 3 crore on two public sector banks – SBI and Canara Bank along with private sector City Union Bank. The Reserve Bank said in its statement released on Monday that this action was taken due to violation of regulatory norms on these banks. According to Bhasha news, RBI said that a penalty of Rs 2 crore has been imposed on SBI for violation of certain norms related to Depositor Education Awareness Fund Scheme, 2014.
City Union Bank fined Rs 66 lakh
According to the news, apart from this, City Union Bank Limited has been fined for non-compliance of some instructions of the Reserve Bank of India (RBI) related to income recognition, asset classification and loan related provisions, provisions regarding non-performing loans (NPA) and protecting its customers. A fine of Rs 66 lakh has been imposed. RBI has also imposed a fine of Rs 32.30 lakh on Canara Bank for non-compliance of certain instructions.
Fine imposed for deficiencies in regulatory compliance
A fine of Rs 16 lakh has been imposed on Ocean Capital Markets Ltd of Rourkela in Odisha for non-compliance of certain provisions related to non-banking financial companies (NBFCs). RBI has clearly stated that the penalty has been imposed for deficiencies in regulatory compliance. It has nothing to do with the transaction or agreement between the bank and the customers. Apart from this, the government has given permission to GST Network to share the data of registered businesses with the Reserve Bank’s ‘Public Tech Platform for Frictionless Credit’ with the consent of the registered businesses. This decision will help business units to get loans faster on the basis of shared information related to Goods and Services Tax (GST).
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