RBI has imposed monetary fines on City Union Bank, Tamil Nadu Mercantile Bank, and two other lenders for violation of certain instructions issued by the Central Bank. City Union Bank has been fined Rs 1 crore. In another statement, the RBI said that it has imposed a penalty of Rs 1 crore on Tamil Nadu Mercantile Bank for not complying with some of the provisions issued by it on its cybersecurity framework in banks.
The Reserve Bank of India also imposed a penalty of Rs 90 lakh on Nutan Citizen Co-operative Bank, Ahmedabad for non-compliance with the circular’s instructions on interest rates on deposits, Know Your Customer (KYC), and fraud monitoring and reporting mechanisms.
Apex Bank has also imposed a monetary penalty of Rs 10 lakh on Daimler Financial Services India Private Limited here. The Reserve Bank has imposed a penalty on the bank for not following its instructions issued. The central bank of the country has considered it to be a failure in the matter of regulatory compliance. For these reasons, the Reserve Bank asked some questions first. Later, after not being satisfied with the reply given by the co-operative bank, RBI announced the fixing of the fine.
Explain that earlier, the Reserve Bank of India imposed a fine of one lakh rupees on the Priyadarshini Mahila Nagari Sahakari Bank of Maharashtra for ignoring the rules. It was said on behalf of the Reserve Bank that this cooperative bank had issued some instructions related to the Supervisory Action Framework i.e. SAF which it had not followed. This is the reason why the Reserve Bank has decided to impose a fine.
According to the central bank, the bank was found to be responsible for the violation of the rules after considering the written and oral replies given by Priyadarshini Mahila Nagari Cooperative Bank during the hearing. It was also found that a penalty action can be taken against the bank on this basis. Earlier, the Reserve Bank imposed a fine of Rs 40 lakh on Himachal Pradesh State Cooperative Bank of Shimla. The fine was imposed for violation of certain guidelines issued by NABARD. At the same time, on May 3, ICICI Bank (ICICI Bank) was fined Rs 3 crore.