RBI New Action: The Reserve Bank of India is constantly taking several strict steps to strengthen the banking system. In this episode, the Reserve Bank has imposed a total fine of Rs 68.1 lakh on these two Bank for violating the rules.
RBI New Action: The Reserve Bank of India is constantly taking several strict steps to strengthen the banking system. In this episode, the Reserve Bank has imposed a total fine of Rs 68.1 lakh on Nainital Bank and Ujjivan Small Finance Bank for violating the rules. RBI said in a statement that Nainital Bank Limited was fined Rs 61.40 lakh for non-compliance of certain instructions on interest rates on loans and customer service in banks. Apart from this, Ujjivan Small Finance Bank was fined Rs 6.70 lakh for non-compliance of some rules issued by RBI.
Action on Shriram Finance also
Similarly, RBI has also imposed a fine of Rs 5.80 lakh on non-banking entity Shriram Finance. This fine was imposed on Shriram Finance for not properly following the necessary process related to KYC and the rules for providing credit information.
Fall in shares
Ujjivan Small Finance Bank’s shares fell by 1.27%. During this time, the stock came down to the level of Rs 33.48. Last January, the stock had come down to Rs 30.85. This is the 52-week low of the stock.
Action on New India Co-operative Bank
Meanwhile, the Reserve Bank of India has dissolved the board of directors of Mumbai-based New India Co-operative Bank, citing poor operating standards. RBI took this step a day after imposing several restrictions on the bank. After the RBI restrictions, a huge crowd of customers gathered outside the bank’s branches on Friday. These restrictions prevent the bank from issuing new loans and also ban the bank from withdrawing customer deposits for six months. The bank has 28 branches, most of which are located in the Mumbai area.
