RBI fines 14 banks after reviewing group accounts
The Reserve Bank of India on Wednesday penalized 14 banks for violating the provisions on bank lending to non-bank finance companies and maintaining data on large exposures. In a press release, RBI said the sanction was imposed following an “audit of group companies” by the regulator. Although the name of the group was not disclosed, RBI named the 14 banks sanctioned by this includes Bandhan Bank, Bank of Baroda, Bank of Maharashtra, Central Bank of India, Credit Suisse, Indian Bank, Indusind Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South indian Bank, State Bank of India, Jammu & Kashmir Bank, Utkarsh Small Finance Bank.
“RBI imposed a financial penalty on fourteen banks, as indicated below, for failing to comply with certain provisions of the instructions issued by the RBI on” Loans to non-bank financial corporations (NBFC) “,” Bank financing to corporations non-bank financial instruments (NBFC) ‘,’ Loans and advances – Statutory and other restrictions ‘,’ Creation of a central repository of major common risks – between banks ‘read with the content of the circular on the’ Declaration to the central repository of Information on Large Loans (CRILC) ‘,’ Operating Guidelines for Small Finance Banks’ and for contraventions of the provisions of Article 19 (2) and Article 20 (1) of the Banking Regulation Act 1949 RBI said in its press release.
RBI imposed a penalty ranging from ₹50 lakh to ₹2 crore on these banks for non-compliance with regulatory provisions.
“Responses received from banks, oral submissions made at personal hearings wherever banks so request, and consideration of additional submissions, when made, have been duly taken into account, and to the extent that charges of failure to comply with RBI instructions / contraventions of the provisions of the Banking Regulation Act 1949 were upheld, the RBI concluded that it justified the imposition of a financial penalty on the fourteen banks mentioned above ”, he declared.
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