RBI Action On Bank: A fine of Rs 59.20 lakh has been imposed on this reputed bank for non-compliance with certain directives on interest rates on deposits and customer services in banks.
RBI Action On Bank: The Reserve Bank of India is the regulator of the country’s banks and keeps taking action on any irregularities found in the banks. From time to time, there are reports of the Reserve Bank taking action against many banks and financial institutions. In the latest news, the Reserve Bank has taken action against another big bank and imposed a fine of lakhs of rupees on it.
Reserve Bank imposes fine of Rs 59.20 lakh on South Indian Bank
The Reserve Bank of India (RBI) has imposed a fine of Rs 59.20 lakh on South Indian Bank for non-compliance with certain instructions on interest rates on deposits and customer services in banks. The bank has given this information. A test was conducted by the Reserve Bank of India for the audit valuation of the bank regarding the financial position of the bank as on March 31, 2023.
RBI had issued notice to South Indian Bank
A notice was issued to South Indian Bank Limited on the basis of non-compliance of RBI instructions and related correspondence. After considering the bank’s reply to the notice and the verbal presentation made during the personal hearing, RBI found that the allegations levelled against the bank were substantiated and warranted imposition of monetary penalty.
Why was the fine imposed on South Indian Bank?
RBI said that South Indian Bank had imposed penalty and charges for not maintaining minimum balance/average minimum balance without informing some customers through SMS or e-mail or letter. RBI has taken this action against the bank against this.
What did RBI say?
RBI said that this fine is based on deficiencies in statutory and regulatory compliance. Its purpose is not to affect the validity of any transaction or agreement made by the bank with its customers.
