The Reserve Bank of India (RBI) has taken action against several banks for not following its rules.
After earlier penalizing banks like SBI, HDFC Bank, and ICICI Bank, RBI has now fined Kotak Mahindra Bank, IDFC First Bank, and Punjab National Bank (PNB) due to certain rule violations.
RBI made it clear that these penalties are due to regulatory shortcomings and not related to any specific customer transactions or agreements.
Contents
Details of the Penalties
Kotak Mahindra Bank
A fine of ₹61.4 lakh has been imposed for not following guidelines such as the ‘Loan System for Bank Credit Delivery’ and ‘Loans and Advances – Statutory and Other Restrictions’.
RBI stated that the penalty is solely for failing to follow these guidelines, and not related to any customer dealings.
IDFC First Bank
RBI fined IDFC First Bank ₹38.6 lakh for violations related to the ‘Know Your Customer (KYC)’ rules. These rules are crucial for identifying customers and monitoring their transactions.
The penalty is due to gaps in compliance and does not reflect any issue with customer transactions.
Punjab National Bank (PNB)
A penalty of ₹29.6 lakh was imposed on PNB for not following rules about customer service. These rules ensure that customers receive fair
and transparent banking services. Like the other penalties, this one is also not linked to any specific customer issue.
No Impact on Bank Customers
RBI clarified that these penalties aim to ensure that banks follow proper rules and procedures. They are not meant to question any valid customer transactions or agreements.
Customers of these banks will not be affected in any way, and all banking services will continue as usual.