Mumbai: In a recent penalty imposed by the Reserve Bank of India, three lenders including City Union Bank, Tamilnad Mercantile Bank and two others have been directed to pay monetary fee for contravention of certain directions issued by the central bank.
What are the monetary fee imposed on the banks?
The apex bank has imposed a penalty of Rs1 crore on City Union Bank Limited for contravention of/non-compliance with certain provisions contained in the RBI (Lending to Micro, Small & Medium Enterprises (MSME) Sector) Directions, 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements. Also Read: Gautam Adani Becomes Asia's Second Richest Person, Topples China's Zong Shanshan
While the central bank has imposed penalty of Rs1 crore on Tamilnad Mercantile Bank for non-compliance with certain provisions of directions issued by it on Cyber Security Framework in Banks.
Besides this, a penalty of Rs90 lakh has been slapped on Nutan Nagarik Sahakari Bank, Ahmedabad for non-compliance with directions Interest Rate on Deposits, Know Your Customer (KYC) and Circular on Frauds Monitoring and Reporting Mechanism.
Not just this, the apex bank has also imposed monetary penalty of Rs10 lakh on Daimler Financial Services India Private Limited, Pune for non-compliance with certain provisions of the directions issued by RBI contained in 'Reserve Bank Commercial Paper Directions 2017' and 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016'.
All the above penalties have been imposed based on the deficiencies in regulatory compliance. However, it is not intended to pronounce upon the validity of any transaction or agreement entered into by them with customers.
(With inputs from PTI)