RBI Action: RBI imposed heavy fine on these 3 big banks, accused of breaking the rules

RBI has imposed monetary fines on three big banks including Punjab National Bank. They are accused of non-compliance of the instructions. Let us know why the central bank took this step and will it also affect the customers?

RBI Action: Reserve Bank of India has taken action against three famous banks. A fine of more than one crore rupees has been imposed. This list includes one government and two private banks. RBI has taken this step due to non-compliance of the rules. A statement related to this has also been issued on Thursday, 17 April.

A fine of Rs 29.60 lakh has been imposed on the public sector Punjab National Bank (PNB). At the same time, a monetary penalty of Rs 38.60 lakh has been imposed on IDFC Bank and Rs 61.40 lakh on Kotak Mahindra Bank. Some have violated KYC and some have violated the guidelines related to customer service.

During the inspection conducted in relation to the financial condition, RBI found that the banks were not complying with the rules properly. After which a show cause notice was issued to all the banks. The bank’s response and further investigation confirmed the allegations, after which the central bank decided to impose the fine.

Punjab National Bank

PNB did not comply with some instructions issued on “Customer Service in Banks”. Penalty charges were levied for not maintaining minimum balance in accounts, which is against the rules. Therefore, RBI decided to impose a fine. Please note that this action will not affect the validity of the transaction or agreement between the bank and the customers. Nor will it have any effect on any other action of RBI in future.

IDFC First Bank

IDFC First Bank did not complete the required customer due diligence process for opening current accounts of some sole proprietorship firms. After this allegation was confirmed, the central bank decided to impose a monetary penalty.

Kotak Mahindra Bank

Kotak Mahindra failed to ensure that the outstanding “loan component” was less than the specified percentage of the approved fund-based working capital limit for some borrowers. Apart from this, the bank also did not comply with the margin requirements for intra-day limits for some stock brokers.

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