look news india
These days the Reserve Bank of India is keeping a close watch on banks and finance companies. RBI is seen in action mode on violation of rules by banks and finance companies. On Monday, the Reserve Bank has taken major action against 2 banks and 3 finance companies. Under this, heavy financial penalty has been imposed on five institutions including CSB Bank, Union Bank of India and Muthoot Housing Finance.
Penalties imposed for violation of regulatory norms
The banking entities prosecuted by RBI include Nido Home Finance Limited and Ashoka Investment Limited. This fine has been imposed for violation of regulatory norms. On whom did RBI impose a fine and how much?
1.86 crore fine imposed on CSB Bank
RBI has imposed a penalty of Rs 1.86 crore on CSB Bank for non-compliance of certain guidelines relating to risk management and code of conduct in the master circulation on outsourcing of financial services and branch authorisation.
1.06 crore fine imposed on Union Bank of India
In another statement, the central bank said that Union Bank of India has been fined Rs 1.06 crore for non-compliance of certain norms relating to Know Your Customer (KYC) and other reasons.
5 lakh fine imposed on Muthoot Housing Finance
A fine of Rs 5 lakh has been imposed on Muthoot Housing Finance Company for non-compliance of certain provisions of the Non-Banking Financial Company – Housing Finance Companies Directions 2021.
Nido Home Finance and Ashok Investments fined Rs 3.1 lakh
Apart from this, a fine of Rs 5 lakh has been imposed on Nido Home Finance Limited and Rs 3.1 lakh on Ashok Investment Limited.
What impact will RBI's action have on consumers?
RBI said that in each case the fine is based on deficiencies in regulatory compliance and is not related to the financial transactions of these entities. This fine is an indication that RBI is forcing banks to follow the rules. This will strengthen the banking system and customers will be able to get better services in future. Not only this, your money will also be safe.
This means that instead of loss, customers will benefit from this decision of RBI. You will not face any problem in depositing or withdrawing money in your bank or financial institution.