Economic Fraud
RBI Penalises Three Banks, Imposes Crore-Worth Penalties
The Reserve Bank of India (RBI) has imposed monetary penalties on Jammu and Kashmir Bank, Bank of India, Canara Bank, and Datson Exports for deficiencies in regulatory compliance across various areas.
Penalties Imposed
1. Jammu and Kashmir Bank: A penalty of Rs 3.31 crore has been levied for violations related to financial inclusion, including non-compliance with norms on Basic Savings Bank Deposit Accounts (BSBDA), Know Your Customer (KYC) guidelines, and statutory restrictions on loans and advances.
2. Bank of India: The public sector bank has been fined Rs 1 crore for failing to adhere to certain provisions of the Banking Regulation Act, 1949.
3. Canara Bank: A penalty of Rs 1.63 crore was imposed for non-compliance with directives related to priority sector lending, interest rates on deposits, and financial inclusion measures such as access to banking services through BSBDA accounts.
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4. Datson Exports, West Bengal: A fine of Rs 1 lakh was imposed on this non-banking financial company (NBFC) for non-compliance with guidelines on managing risks and adhering to the code of conduct in outsourcing financial services.
RBI’s Stance
The RBI clarified that these penalties are based on deficiencies in statutory and regulatory compliance. They do not question the validity of any transactions or agreements entered into by these entities with their customers.
Regulatory Oversight
The penalties highlight the RBI’s commitment to ensuring strict adherence to its guidelines and maintaining the integrity of the financial system. Institutions are urged to bolster their compliance mechanisms to prevent such lapses in the future.
This serves as a reminder for financial entities to prioritize regulatory compliance to uphold customer trust and the stability of the banking sector.
