RBI: The Reserve Bank of India (RBI) is responsible for supervising the operations of all banks within the country. When a bank fails to comply with regulations and acts independently, the RBI possesses the power to impose financial penalties.
RBI impose fines in these 3 banks including HDFC
In this regard, the RBI announced on Wednesday that it has imposed fines on HDFC Bank and Punjab and Sind Bank for their non-compliance with regulatory requirements. As stated by the central bank, HDFC Bank has been fined Rs 75 lakh for not adhering to specific RBI directives related to ‘Know Your Customer’ (KYC) protocols.
Rs 68.20 lakh for not following certain guidelines
Similarly, Punjab and Sind Bank has incurred a penalty of Rs 68.20 lakh for not following certain guidelines associated with the ‘Creation of a Central Repository of Major Common Risks in Banks’ and ‘Financial Inclusion – Access to Banking Services – Basic Savings Bank Deposit Account (BSBDA)’. The RBI emphasized that these penalties are a result of deficiencies in regulatory compliance and are not meant to evaluate the validity of any transactions or agreements made by the banks with their customers.
Step against KLM Exiva Finvest also
Additionally, the Reserve Bank has also levied a fine of Rs 10 lakh on KLM Exiva Finvest for failing to fulfill the requirements related to dividend declarations.