look news india
New Delhi, 09 November (HS). The Reserve Bank of India (RBI) has imposed a fine of Rs 59.20 lakh on South Indian Bank. RBI has imposed this penalty on the bank due to lapse in compliance with certain instructions on 'Interest Rate on Deposits' and 'Customer Service in Banks'.
RBI said in a statement that it has imposed a fine of Rs 59.20 lakh on South Indian Bank for violating rules related to 'interest rate on deposits' and 'customer service'. The bank regulator's probe found that the bank penalized some customers for not maintaining minimum account balance without proper notice and wrongly marked liens on some NRE savings accounts.
The Reserve Bank had conducted a statutory inspection for supervisory assessment of the bank with reference to its financial position as on March 31, 2023. A notice was also issued to South Indian Bank on the basis of non-compliance with RBI instructions and related correspondence. After considering the bank's response to the central bank's notice and oral submissions made during the personal hearing, the RBI has imposed the monetary penalty after finding the allegations against the bank to be true.
RBI said that this penalty on the bank is based on deficiencies in statutory and regulatory compliance. It is not intended to affect the validity of any transaction or agreement entered into by the Bank with its customers.