look news india
The Reserve Bank of India (RBI) has once again taken strict action against three banks, which include the country's largest banks SBI (State Bank of India), Canara Bank and City Union Bank. Penalties have been imposed for violations of various regulatory rules. The maximum fine of Rs 2 crore has been imposed on State Bank of India (SBI). The bank has been accused of violating several rules of the Depositor Awareness Fund Scheme 2014. The central bank has imposed a fine of Rs 66 lakh on City Union Bank. The bank has been accused of violating RBI's prudential rules on income recognition, asset classification and advance provision rules related to NPA accounts as well as the Know Your Direction rule. Canara Bank has also been accused of not following some guidelines. Therefore, a fine of Rs 32.30 lakh has been imposed on the bank.
Action also taken against Ocean Capital Market Limited
RBI said that a fine of Rs 16 lakh has also been imposed on Ocean Capital Market Limited based in Rourkela, Odisha. The company was accused of non-compliance with NBFC (non-banking financial company) rules. RBI keeps taking such action from time to time after regulatory scrutiny. The central bank said that this penalty has been imposed after deficiencies found in the regulatory investigation. These decisions will not have any impact on the bank's customers.
Strict action against PAYTM payment bank
On January 31, the central bank had banned PAYTM Payments Bank from taking deposits due to violation of regulatory norms. According to the order, the payment bank will not be able to do deposits, credit transactions or top-up after March 15. PAYTM Payment Bank co-founder Vijay Shekhar Sharma has resigned as non-executive chairman. One97 Communication Limited has decided to withdraw its nomination from the board of PAYTM Payment Bank, after which Vijay Shekhar Sharma has also resigned from the post of board member.