RBI penalised 12 banks for various violations in last 6 years
PrintListen to this Article
The RTI query, which was filed by information activist Aseem Takyar, had asked for details of nationalised and private banks that have been imposed fines in the past six years. In reply, the RBI gave a list of 12 names, including that of SBI, IDFC, ICICI, and others penalised amounts ranging from Rs 1 million to Rs 589 million. The list of banks penalised has been compiled from the time the enforcement directorate of RBI was set up in April 2017.
In answer to a question on a list of banks yet to pay penalty, the regulating bank didn’t give any data, instead saying that not all banks examined were penalised. The answer said, “Enforcement is an on-going process of various matters being under examination from time to time, which may not always culminate in imposition of fine.”
The list given by RBI includes ICICI bank, which was penalised Rs 589 million in March this year besides three other banks, all of which were penalised in March 2018: SBI (Rs 4 million), Airtel Payments Bank (Rs 50 million) and Equitas Small Finance Bank Ltd (Rs 1 million). Others penalised this year include Axis Bank (Rs 30 million) and Indian Overseas bank (Rs 20 million). While ICICI was penalised for non-compliance with directions on direct sale of securities from its HTM portfolio, SBI was fined for non-detection and destruction of counterfeit notes. Equitas was fined for distribution of third party products without priot approval from RBI and Airtel Payments for contravening operating guidelines of payments banks and KYV norms.
In 2017, the banks imposed fines include Union Bank - twice - for failure to comply with RBI norms on KYC (know your customer), IDFC Bank (Rs 20 million) for contravention of regulatory restrictions pertaining to loans, says the RBI response to the RTI query. Others are Yes Bank (Rs 60 million), Syndicate Bank (Rs 50 million) and IndusInd Bank (Rs 30 million). Their violations range from compliance with KYC norms to delayed reporting of security incident involving ATMs of the bank. #casansaar (Source - Times of India)
Category : RBI | Comments : 0 | Hits : 751
RBI has issued draft rules to tighten dividend payouts by banks by linking distributions to capital adequacy, asset and profit quality, setting a uniform prudential framework effective from FY27. In the previous financial year, banks paid over Rs 75,000 crore dividend after booking record profits. Under RBI's draft rules, dividend payments by banks will be governed by a common set of conditions from FY27. The directions apply to all banking companies, corresponding new banks and SBI, and ...
Listing of an Indian company on international stock exchanges got a push with the Reserve Bank of India (RBI) coming out with regulations under Foreign Exchange Management (FEMA). Experts believe new regulations will help companies utilise foreign exchange more effectively. Regulations have been made public through two notifications. First set of regulations deals with mode of payment and reporting of non-debt instruments. “The proceeds of purchase / subscription of equity shares of an ...
The Lok Sabha elections 2024 are in full swing with electioneering adding much colour to the entire process. However, to ensure that there is no wrongdoing, the Reserve Bank of India (RBI) has sent a missive to Payment System Operators (PSOs) asking them to keep a watch on all suspicious high-value transactions that they may come across in their systems. The general purpose of the letter is to deny the use of electronic fund transfer mechanism to anyone who is intending to influence the election...
he Reserve Bank on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem. The draft also covers the physical point-of-sale activities of payment aggregators (PAs). The RBI said that given the growth in digital transactions and the significant role that PAs play in this space, the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations ...
The RBI on Monday eased rules to allow resident entities to hedge their exposures to the price risk of gold using the OTC derivatives in the International Financial Services Centre (IFSC) in addition to the derivatives on the exchanges in the IFSC. Resident entities such as banks were permitted to hedge their exposure to the price risk of gold on the exchanges in the IFSC that are recognised by the International Financial Services Centres Authority (IFSCA), and the new directive provides them...
Comments