RBI imposed a fine of ₹ 75 lakh (KYC) on HDFC Bank and ₹ 68.20 lakh on Punjab & Sind Bank for not following the rules. Know whether there will be no effect on the customers.
The Reserve Bank of India (RBI) said on Wednesday that it has imposed a fine on HDFC Bank and Punjab & Sind Bank for lack of compliance with the rules. The central bank said in a statement that HDFC Bank has been fined Rs 75 lakh for not following some instructions of RBI on KYC. Apart from this, RBI has imposed a fine of Rs 68.20 lakh on Punjab & Sind Bank. However, these fines will not have any effect on the account holders of the bank.
Punjab and Sind Bank was fined for this reason
In another statement, RBI said that Punjab and Sind Bank has been fined Rs 68.20 lakh for not following some instructions related to the rules related to keeping the information of large loans given by banks at one place, providing banking services to the common people and opening Basic Savings Bank Accounts (BSBDA) for them. The Reserve Bank has also imposed a fine of Rs 10 lakh on KLM Exiva Finvest for not complying with the requirements related to the declaration of dividend.
This irregularity was done in the declaration of dividend
RBI’s investigation on KLM Exiva Finvest has revealed that the company had declared dividend for the financial year 2023-24, but it could not fulfill the necessary financial conditions set by RBI for the last three years. These rules have been made for non-banking financial companies (NBFCs). RBI had also sent a show cause notice to the company. After the company’s response and personal hearing, the central bank found that the allegations against the company were correct and the fine imposed on them was also justified.
RBI has said that this fine has been imposed on both the bank and NBFC because the banks had made shortcomings in following the rules. Its purpose is not to decide whether the transactions or agreements made by the banks with their customers are right or wrong. Also, apart from this fine, RBI can take any other necessary action against the company in future.
