RBI imposes penalty on PNB, Federal Bank, 2 other entities: Legal Economics

Keywords: KYC, RBI, Customer Service Bank , Interest Rate on Advance

On Friday The Reserve Bank of India imposed a Rs 72 lakh penalty on state-owned Punjab National Bank Ltd. and a Rs 30 lakh penalty on private sector Federal Bank Ltd. for non-compliance with certain regulatory norms.

The Penalty On Punjab National Bank has been imposed due to non-compliance with certain provisions related to ‘interest rate on advances’ and ‘customer service in banks’.

RBI also imposed penalty on the Mercedes-Benz Financial Services India Pvt of Rs 10 Lakhs for non-compliance with certain provisions of the Know Your Customer Direction,  (KYC) 2016.

The Fedral Bank also has been punished for contravention of certain provisions of KYC norm.

The RBI also Informed that the penalty has been imposed on Kosamattam Finance Ltd., Kottayam, for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’.
The penalty amounts to Rs 13.38 lakh which has been imposed on Kosamattam Finanace Ltd.

So all Over RBI imposes the penalty on the banks and other entities for non compliance of regulatory norms formed by RBI.

Written By : Shalmali Ugare, College : DES Navalmal Firodia Law College , Pune, Sem: 3^rd sem, SY LLB Intern under legal vidhiya. 

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