RBI New Action: The Reserve Bank of India (RBI) has imposed fines on many banks. Let us know in detail how much fine has been imposed by RBI on which bank. We will also know the reason for this fine.
RBI New Action: The Reserve Bank of India (RBI) on Friday said that it has imposed fines on four banks including ICICI Bank and Bank of Baroda for deficiencies in regulatory compliance. Let us know in detail how much fine has been imposed by RBI on which bank. We will also know the reason for this fine.
How much fine imposed on which bank
RBI has imposed a fine of Rs 97.80 lakh on ICICI Bank for non-compliance of certain instructions related to cyber security framework in banks, know your customer (KYC) and issuance of credit cards and debit cards. At the same time, RBI has imposed a fine of Rs 61.40 lakh on Bank of Baroda for non-compliance of certain instructions on financial services of banks and customer service in banks. Similarly, Axis Bank has been fined ₹29.60 lakh. In its statement explaining the action against Axis Bank, RBI said that the bank sent unauthorized or unrelated entries through some internal/office accounts.
Action also taken on these banks
Apart from this, the central bank has also imposed a fine of Rs 31.8 lakh on IDBI Bank Limited and Rs 31.80 lakh on Bank of Maharashtra due to some compliance lapses. RBI said that in all the cases the fine has been imposed due to deficiencies in regulatory compliance and it has no relation to the validity of any transaction or agreement of the banks with their customers.
RBI committee recommended
Meanwhile, a working group of the Reserve Bank has recommended maintaining the existing trading hours for foreign exchange markets and extending the time of ‘call money’ market till 7 pm. Currency markets are basically hedging i.e. risk management markets which are open for trading from 9 am to 3:30 pm.
These allow trading even after market hours, effectively making them markets that are active 24 hours a day on working days. On the other hand, the trading hours in the call money market are from 9 am to 5 pm. For repo transactions in government securities, the timing is from 9 am to 2.30 pm.
