The Reserve Bank of India (RBI) has imposed monetary penalty on three banks for non-compliance with the Banking Regulation Act, 1949.
It includes State Bank of India (SBI), on which penalty of Rs 2 crore has been issued for contravention of specific directions of RBI issued to the bank on payment of remuneration to employees in the form of commission.
Further, a penalty of Rs 1 lakh has been imposed on Indore Paraspar Sahakari Bank Limited, Indore for non-compliance with the directions issued by RBI on “Exposure Norms and Statutory/Other Restrictions-UCBs”.
Also, RBI has imposed a penalty of Rs 50 thousand on Jila Sahakari Kendriya Bank Maryadit, Tikamgarh for non-compliance with the directions issued by RBI on Know Your Customer (KYC).
However, this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.