RBI action against banks violating rules, imposed heavy fine
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The Reserve Bank of India has once again shown strictness against the banks. Reserve Bank of India which basically works to monitor all the banks of the country. The Reserve Bank of India checks which banks are following the rules and which are not. In this context, RBI has taken action against some banks which were not following some instructions related to ‘interest rate on advances’.
Now RBI has issued some instructions related to ‘Interest Rate on Advances’ which were not followed by DCB Bank and Tamilnad Mercantile Bank. RBI has taken action against these banks for not following the rules. Fine has been imposed on both the banks.
In this regard, the Reserve Bank has issued a statement on Tuesday in which it said that a monetary penalty of Rs 63.6 lakh has been imposed on DCB Bank. In a separate statement, the central bank said a penalty of Rs 1.31 crore was imposed on Tamil Nadu Mercantile Bank for non-compliance with certain directions issued on ‘Interest Rates on Advances’ and amendments in Central Repository of Information on Large Credit (CRILC) reporting Is. In both cases, the Reserve Bank said the penalty was based on deficiencies in regulatory compliance and is not intended to affect the validity of any transactions or agreements entered into with their customers.
Fine imposed for violating rules
The Reserve Bank says that this penalty has been imposed against both the banks due to violation of rules. The penalty has been imposed due to deficiencies. RBI has taken this action due to the shortcomings found in the banks. Let us tell you that basically the objective of RBI is that the bank does not affect the validity of any transaction or agreement made with the customers.
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