RBI penalises SBI, 13 other banks for non-adherence to NBFC lending rules

3 months ago 24

The Reserve Bank of India (RBI) has penalised 14 banks including State Bank of India, IndusInd Bank, Bandhan Bank and Bank of Baroda for non-compliance of assorted lending norms.

RBIHe powerfully rebutted the conception that a sharper and sustained absorption connected the output curve mightiness beryllium eating distant astatine the cardinal bank's main mandate, which is, inflation-targetting.

The Reserve Bank of India (RBI) has penalised 14 banks including State Bank of India, IndusInd Bank, Bandhan Bank and Bank of Baroda for non-compliance of assorted lending norms. RBI recovered that these lenders were non-compliant with definite provisions of directions that the regulator had issued connected lending to Non-Banking Financial Companies (NBFCs). The banks were besides called retired connected not adhering to restrictions and provisions connected loans arsenic good arsenic advances and reporting to the cardinal database connected ample exposures.

In presumption of this, RBI levied a punishment of Rs 2 crore connected Bank of Baroda. For Central Bank of India, IndusInd Bank, Credit Suisse AG, Bandhan Bank, Indian Bank, Bank of Maharashtra, Utkarsh Small Finance Bank, Karur Vysya Bank, Karnataka Bank, South Indian Bank, Punjab and Sind Bank, and Jammu & Kashmir Bank, the regulator has levied a good of Rs 1 crore. State Bank of India, connected the different manus volition person to wage a punishment of Rs 50 lakh.

“A scrutiny successful the accounts of the companies of a Group was carried retired by RBI and it was observed that the banks had failed to comply with provisions of 1 oregon much of the aforesaid directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949,” RBI said successful a statement. The regulator said it had issued notices to these banks seeking amusement origin arsenic to wherefore RBI should not enforce punishment connected them for non-compliance.

After examining the replies received from the banks on with oral submissions made successful the idiosyncratic hearings, RBI concluded the imposition of monetary punishment connected these banks.

“The penalties person been imposed successful workout of powers vested successful RBI nether the provisions of conception 47 A (1) (c) work with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, arsenic applicable. This enactment is based connected the deficiencies successful regulatory compliance and is not intended to pronounce upon the validity of immoderate transaction oregon statement entered into by the banks with their customers,” RBI added.

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