RBI Imposes Monetary Penalty: Banking sector regulator Reserve Bank of India has decided to impose monetary penalty on three big public sector banks, which include State Bank of India, Indian Bank and Punjab and Sindh Bank.
RBI has imposed this penalty due to violations in KYC (Know Your Customer) rules and Anti Money Laundering rules in opening current accounts.
RBI has imposed a fine of Rs 1.30 crore on State Bank of India in an order issued on September 21, 2023. RBI has imposed this penalty due to non-compliance of Central Bank guidelines regarding loans and advances.
RBI has decided to impose this penalty under the powers given to it. RBI had investigated the financial position of the bank on 31 March 2021. Many flaws were found in the risk assessment report, after which a notice was issued to the bank.
After receiving the reply from the bank, additional information was provided by the bank after oral submission in personal hearing. Due to dissatisfaction, this penalty has been imposed. RBI has imposed a penalty of Rs 1.62 crore on Indian Bank. This penalty has been imposed on Indian Bank for not following KYC directions and not following RBI instructions on deposits.
RBI has imposed a fine of Rs 1 crore on Punjab and Sindh Bank. This penalty has been imposed on the bank for non-compliance with the rules of the Banking Regulation Act regarding Depositor Education and Awareness Fund Scheme.
RBI had reviewed the financial condition of the bank on 31 March 2021. In which it was found that the bank delayed crediting the money within the stipulated period under the Depositor Education and Awareness Fund Scheme. After which RBI has decided to impose this penalty.
