Since January 2020, the Reserve Bank of India (RBI) has imposed fines totaling Rs 730.6 crore in 48 cases involving banks’ breach of certain regulations or directions.
The central bank has imposed the fine in a brief order offering few details, The Indian Express reported.
In August this year, the RBI fined a public sector bank Rs 3.2 lakh for non-compliance with certain RBI (Fraud Classification and Reporting by Commercial Banks and Selected Financial Institutions) Directives 2016, the report added. fine.
In most of the orders passed by the RBI, the banking regulator said penalties were imposed for non-compliance with certain regulations and directions. The orders appear in paragraphs on the RBI website with sparse details on the breaches. On the other hand, penalty orders from regulators such as the Insurance Regulatory and Development Authority (IRDAI) and the Securities and Exchange Board of India (SEBI) are more detailed. They described the violations and modus operandi in the order, the report said.
The RBI order also drew outrage, with some suggesting its decision be challenged by setting up an appeals court like the Securities Appellate Tribunal (SAT).
This month, the central bank fined nine cooperative banks between Rs 25,000 and Rs 3.1 lakh for non-compliance with its guidelines. According to nine separate RBI statements, these banks include Kendrapara Urban Cooperative Bank, Berhampur Urban Cooperative Bank, Renuka Nagarik Sahakari Bank Maryadit, Jamshedpur Urban Cooperative Bank, Krishna Business Cooperative Bank and others.
The RBI pointed out that the action taken was flawed in terms of regulatory compliance and said it had no intention of declaring the validity of any transaction or agreement entered into by the bank with its customers.
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