Thursday, June 20, 2024

RBI penalizes three banks

On Friday, the Reserve Bank announced penalties totaling Rs 2.49 crore on three banks, namely Dhanlaxmi Bank, Punjab and Sind Bank, and ESAF Small Finance Bank, for violating regulatory norms. Dhanlaxmi Bank faces a penalty of Rs 1.20 crore for non-compliance with regulations related to loans, advances, KYC, and deposit interest rates. Punjab and Sind Bank received a Rs 1 crore fine for non-compliance with specific directives regarding loans and advances. Additionally, ESAF Small Finance Bank incurred a penalty of Rs 29.55 lakh for non-compliance with RBI’s directives on customer service in banks. The penalties are linked to regulatory compliance shortcomings and don’t question the validity of transactions or agreements between the banks and their customers, as per RBI statements.

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