GG News Bureau
New Delhi, 9th July. The Reserve Bank of India (RBI) announced on Friday that it has imposed a penalty of Rs 5.72 crore on Federal Bank for regulatory compliance deficiencies.
Bank of India has also been fined Rs 70 lakh for failing to comply with certain provisions of Know Your Customer (KYC) norms and RBI instructions on ‘compliance function in banks,’ according to a statement.
According to a separate statement, RBI said, Federal Bank failed to ensure that no incentive (cash or non-cash) was paid to its staff performing insurance broking/corporate agency services by the insurance company.
The RBI had evaluated the bank’s financial position as of March 31, 2020, in accordance with the requirements of the Statutory Inspection for Supervisory Evaluation (lSE).
In another statement, the RBI stated that Dhani Loans and Services Limited, Gurugram, had been fined Rs 7.6 lakh for failing to comply with KYC requirements.
The RBI stated that the penalties are based on regulatory compliance deficiencies and are not intended to rule on the validity of any transaction or agreement entered into by the two banks and Dhani Loans and Services with their customers.
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