Three Banks Face A Rs. 2.49 Crore Penalty From RBI
The Reserve Bank said on Friday that it had fined three banks—Dhanlaxmi Bank, Punjab and Sind Bank, and others—a total of Rs 2.49 crore for breaking regulatory standards.
The Reserve Bank of India (RBI) said that Dhanlaxmi Bank has been fined Rs 1.20 crore for failing to comply with guidelines on ‘Loans and Advances – Statutory and Other Restrictions,’ KYC, and specific standards pertaining to interest rates on deposits.
In addition, Punjab and Sind Bank has been fined Rs 1 crore for failing to follow specific guidelines on “Loans and Advances – Statutory and Other Restrictions.”
In addition, the central bank fined ESAF Small Finance Bank Rs 29.55 lakh for failing to follow its guidelines for “Customer Service in Banks.”
Three different comments released by the RBI emphasize that the fines are based on the flaws in regulatory compliance and are not meant to rule on the legality of any transaction or arrangement entered into by the lenders with their clients.
