The Reserve Bank of India has imposed penalties on 14 banks, including Bandhan Bank, State Bank of India (SBI), and Bank of Baroda for violating various rules.
As per the Reserve Bank of India, the violations include non-compliance with few provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’ ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ and ‘Loans and Advances – Statutory and Other Restrictions’,
The RBI has imposed penalties on ₹1 crore penalty on Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank, and Utkarsh Small Finance Bank, and Bank of Baroda ( ₹2 crore). State Bank of India (SBI) has to pay ₹50 lakh fine.
The RBI said in a statement, that the penalties have been imposed under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable.
RBI further added that “This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.”