RBI said that in both the cases the fine is based on deficiencies in compliance. Their purpose is not to decide on the validity of any transaction or agreement made by the banks with their customers.
The Reserve Bank of India (RBI) remains in strict mode regarding banking rules. This is the reason that whenever a rule is violated by any bank, RBI takes action. In this episode, now RBI has imposed a big fine on the country’s largest government bank i.e. SBI and Jan Small Finance Bank. RBI said on Friday that it has taken this action for some deficiencies in compliance with the norms. RBI said that in both the cases the fine is based on deficiencies in compliance. Their purpose is not to decide on the validity of any transaction or agreement made by the banks with their customers.
What did RBI say
According to the Reserve Bank of India, SBI has been fined Rs 1,72,80,000 for non-compliance of certain instructions on Loans, Advances-Statutory and Other Restrictions, Customer Protection-Limiting the Liability of Customers in Unauthorized Electronic Banking Transactions and Opening of Current Accounts by Banks-Requirement of Discipline. The central bank said in another statement that a fine of Rs 1 crore has been imposed on Jan Small Finance Bank Limited for violation of certain provisions of the Banking Regulation Act, 1949.
Action on 4 big banks
In the first week of May also, RBI had imposed fines on many big banks. RBI imposed a total fine of Rs 1.91 crore on ICICI Bank Limited, Axis Bank, Bank of Maharashtra and IDBI Bank in different cases. A monetary penalty of Rs 97.80 lakh was imposed on ICICI Bank. Similarly, a monetary fine of Rs 29.60 lakh was imposed on Axis Bank Limited, Rs 31.80 lakh on Bank of Maharashtra. The Central Reserve Bank imposed a fine of Rs 31.80 lakh on IDBI Bank Limited. Similarly, a fine of Rs 61.40 lakh was imposed on Bank of Baroda.
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