look news india
RBI Action On Bank: The Reserve Bank of India is the regulator of banks in the country and takes action if any irregularities are found in the banks. From time to time, there are reports of the Reserve Bank taking action against many banks and financial institutions. In the latest news, the Reserve Bank has taken action against another big bank and imposed a fine of lakhs of rupees.
Reserve Bank has imposed a fine of Rs 59.20 lakh on South Indian Bank.
The Reserve Bank of India (RBI) has imposed a penalty of Rs 59.20 lakh on South Indian Bank for non-compliance of certain instructions regarding interest rates and customer services on deposits in banks. The bank has given this information. With regard to the financial position of the bank as on March 31, 2023, a test was conducted by the Reserve Bank of India for the audited value of the bank.
RBI had issued notice to South Indian Bank
A notice was issued to South Indian Bank Limited for non-compliance with RBI instructions and related correspondence. After considering the bank's reply to the notice and the oral submission made during the personal hearing, RBI found that the allegations made against the bank are true and imposition of monetary penalty is appropriate.
Why was penalty imposed on South Indian Bank?
RBI said South Indian Bank has imposed penalty and charges on certain customers for non-maintenance of minimum balance/average minimum balance without informing them through SMS or e-mail or letter. In protest against this, RBI has taken this action against the bank.
What did RBI say?
RBI said the penalty is based on legal and regulatory compliance deficiencies. It is not intended to affect the validity of any transaction or agreement entered into by the Bank with its customers.