The Reserve Bank of India (RBI) monitors the functioning of all banks in the country. Whenever a bank ignores the rules of RBI (Reserve Bank of India), the central bank is liable to impose a fine. In this instance, the RBI has imposed a penalty of around Rs 3 crore on State Bank of India (SBI), Canara Bank and City Union Bank for violating regulatory norms.
The RBI said in a statement on Monday that a penalty of Rs 2 crore has been imposed on SBI for violating certain rules related to the Depositor Education Awareness Fund Scheme, 2014.
Apart from this, a penalty of Rs 66 lakh has been imposed on City Union Bank Limited for non-compliance with certain RBI instructions related to income recognition, asset classification and loan related norms, NPA and KYC related provisions. According to reports, the RBI has also imposed a penalty of Rs 32.30 lakh on Canara Bank for not complying with certain directives.
Ocean Capital Market Ltd fined Rs 16 lakh Ocean Capital Market Ltd of Rourkela in Odisha for non-compliance with certain norms relating to non-banking financial companies (NBFCs). A fine of Rs 16 lakh has been imposed.
The RBI has clearly stated that this penalty is imposed for lapses in regulatory compliance. It has nothing to do with the transaction or agreement between the bank and the customer.