RBI Fine: RBI imposed heavy fine on these 4 banks for violating the rules

RBI has imposed fines on 4 banks. Some have violated rules related to loans and some have violated KYC. Let’s find out if this will have any impact on customers?

RBI Action: In June, once again the action of the Reserve Bank of India has come to the fore. RBI has imposed monetary penalty on four banks, which are located in Telangana, Andhra Pradesh and Karnataka. RBI has given information about this action on 26 June. Notice was also issued to all the banks. This step has been taken for not complying with the rules properly. A penalty of Rs 1 lakh has been imposed on all.

This list includes The Karnataka Co-operative Bank Limited, Muddebihal, Karnataka, The Chittoor Co-operative Town Bank Limited (Andhra Pradesh), The Karimnagar District Co-operative Central Bank Limited (Telangana) and The Hyderabad District Co-operative Central Bank Limited (Telangana). Violation of rules was revealed during an inspection conducted by RBI and NABARD. After which a show cause notice was also issued. The investigation continued further. Based on the reply received on the notice and other presentations, it was decided to impose penalty.

These banks violated the rules related to loans

The Karimnagar District Co-operative Central Bank Limited and The Hyderabad District Co-operative Central Bank Limited of Telangana sanctioned loans related to directors. This was revealed in the inspection conducted by NABARD. RBI has imposed monetary penalty using the powers provided under section 47A (1) (c), section 46 (4) (i) and 56 under the BR Act 1949.

Action taken against these banks for breaking KYC rules

The Karnataka Co-operative Bank Limited, Muddebihal, Karnataka and The Chittoor Co-operative Town Bank Limited did not comply with the prudential inter-bank (gross) and counterparty risk limits properly. Apart from this, they also failed to upload the KYC records of customers to the Central KYC Record Registry within the stipulated time limit.

Will it affect the customers?

RBI has taken this action against the banks for violating the rules. This will not have any impact on the customers. Transactions and agreements will continue as before. Not only this, this action will not affect any other action taken by RBI in future.

The post RBI Fine: RBI imposed heavy fine on these 4 banks for violating the rules first appeared on informalnewz.

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