look news india
On January 24, 2025, the Reserve Bank of India (RBI) has taken strict action against three public sector banks for non-compliance of rules. A total fine of Rs 5.94 crore has been imposed on these banks. RBI has also reprimanded these banks for their careless attitude.
Action taken against which banks?
RBI has imposed penalty on the following three banks:
- Jammu and Kashmir Bank:
- A fine of Rs 3.31 crore on the bank for violation of rules.
- Bank of India:
- A fine of Rs 1 crore for not transferring the amount to the Education and Awareness Fund on time.
- Canara Bank:
- Fine of Rs 1.63 crore for non-compliance with guidelines related to Priority Sector Loan and Financial Inclusion.
What are the reasons for the fine?
Jammu and Kashmir Bank:
- RBI has imposed this penalty for not following KYC (Know Your Customer) rules properly.
Bank of India:
- The bank did not transfer the amount to the Education and Awareness Fund within the stipulated time, due to which it will have to pay a fine of Rs 1 crore.
Canara Bank:
- Canara Bank did not follow guidelines related to priority sector loans, interest rates on deposits, and financial inclusion. For this the bank will have to pay a fine of Rs 1.63 crore.
Will customers be affected?
- These penalties imposed by RBI will not have a direct impact on bank customers.
- Only if the license of the bank is canceled or their operations are banned, the customers are affected.
- At present, this action has been taken with the aim of improving the processes and working style of banks.