RBI New Action: The Central Reserve Bank has taken a big action. The Reserve Bank has imposed a hefty fine on Kotak Mahindra Bank, IDFC First Bank and Punjab National Bank (PNB).
RBI New Action: The Central Reserve Bank i.e. RBI has imposed a fine on Kotak Mahindra Bank, IDFC First Bank and Punjab National Bank (PNB) for some lapses in regulatory compliance. The Reserve Bank said that Kotak Mahindra Bank has been fined Rs 61.4 lakh for not following some instructions on loans and advances, statutory and other restrictions besides guidelines on the loan system for bank loan distribution. The Reserve Bank said that IDFC First Bank has been fined Rs 38.6 lakh for not following some KYC instructions.
Action also on Punjab National Bank
Apart from this, Punjab National Bank has been fined Rs 29.6 lakh for not following some instructions issued by the Reserve Bank on customer service in banks. In all three cases, the Reserve Bank said that the fine is based on deficiencies in regulatory compliance and is not intended to adjudicate on the validity of any transaction or agreement entered into by the banks with their customers.
Co-operative Bank’s license cancelled
Earlier, the Reserve Bank had cancelled the license of Ahmedabad-based ‘Color Merchants Co-operative Bank’. According to the Reserve Bank, it does not have sufficient capital and earning prospects. The Reserve Bank said that the Registrar of Gujarat Cooperative Societies has also been requested to issue an order to close the bank and appoint a liquidator for the bank. On liquidation, each depositor will be entitled to receive insurance claim amount on his deposits up to a monetary limit of Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Reserve Bank further said that as per the data submitted by the cooperative bank, about 98.51 percent of the depositors are entitled to receive the full amount of their deposits from the DICGC.
