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RBI imposes monetary penalty on J&K Bank, 13 other banks

The Reserve Bank of India has imposed monetary penalty on 14 banks, including Jammu and Kashmir, SBI, Bandhan Bank, Bank of Baroda for various rule violations.

As per the RBI, the violations include non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’ ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ and ‘Loans and Advances – Statutory and Other Restrictions’,

The RBI has imposed penalties on Bank of Baroda ( ₹2 crore), ₹1 crore penalty on Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank, and Utkarsh Small Finance Bank, respectively.

RBI has also imposed ₹50 lakh fine on the State Bank of India (SBI).

The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable, the RBI said in a statement.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers,” RBI added.

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