RBI Slaps Monetary Penalties on 14 Banks


The Reserve Bank of India (RBI) has imposed monetary penalties on 14 banks for non-compliance with certain provisions of directions issued by the RBI.

As clarified by RBI, during scrutiny of the accounts of the companies of a group carried out by the RBI, it was observed that the banks had failed to comply with provisions of directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949.

Thereafter, notices were issued to the banks advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions/contraventions of provisions of the Banking Regulation Act, 1949.

After considering replies from banks, the RBI concluded that it warranted imposition of penalties on the below mentioned banks.

Names of the banks:

  1. Bandhan Bank Ltd.
  2. Bank of Baroda
  3. Bank of Maharashtra
  4. Central Bank of India
  5. Credit Suisse AG
  6. Indian Bank
  7. IndusInd Bank Ltd.
  8. Karnataka Bank Ltd.
  9. Karur Vysya Bank Ltd.
  10. Punjab and Sind Bank
  11. South Indian Bank Ltd.
  12. State Bank of India
  13. The Jammu & Kashmir Bank Ltd.
  14. Utkarsh Small Finance Bank Ltd.

However, this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

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Knowledge Source:

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