The Reserve Bank of India (RBI) has recently imposed a hefty penalty on two major public sector banks, State Bank of India (SBI) and Canara Bank, along with City Union Bank.
The collective fine amounts to approximately Rs 3 crore.
SBI Faces the Brunt:
RBI slapped a penalty of Rs 2 crore on SBI for breaching regulations linked to the ‘Depositor Education Awareness Fund Scheme, 2014’.
Canara Bank and City Union Bank Also Penalized:
Canara Bank and City Union Bank were not spared either. Canara Bank was fined Rs 32.30 lakh, while City Union Bank faced a penalty of Rs 66 lakh for various violations including income certification, loan-related provisions, and KYC norms.
NBFCs Under Scrutiny:
The RBI’s scrutiny extended beyond traditional banks, as Ocean Capital Market Limited of Rourkela, Odisha, an NBFC, was fined Rs 16 lakh for non-compliance with certain provisions related to Non-Banking Financial Companies.
Impact on Customers:
Despite the penalties imposed, customers need not worry about their banking operations.
The fines are strictly related to regulatory compliance lapses and do not affect customer transactions or agreements with the banks.
RBI routinely imposes penalties on financial institutions for non-compliance with regulations, ensuring the integrity of the banking system.
Therefore, customers can continue their banking activities without interruption.
