On Monday, the Reserve Bank of India (RBI) fined five financial institutions.
The fined institutions include Union Bank of India (a public sector bank), CSB Bank, and Muthoot Housing Finance.
The Reserve Bank imposed these fines for violating several regulatory norms.
According to Bhasha news, the RBI fined CSB Bank Rs 1.86 crore for not adhering to risk management guidelines, outsourcing conduct rules, and branch authorization instructions.
Action taken for not following the norms
According to the news, the central bank announced that Union Bank of India was fined Rs 1.06 crore for not complying with Know Your Customer (KYC) norms and other issues.
Muthoot Housing Finance Company was fined Rs 5 lakh for not following certain provisions of the ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’.
The fine is unrelated to the financial transactions
Additionally, Nido Home Finance Limited was fined Rs 5 lakh, and Ashoka Investment Limited was fined Rs 3.1 lakh.
The RBI stated that these fines are due to deficiencies in regulatory compliance and are not related to the financial transactions of these companies.
The RBI has imposed significant fines on several banks this year. Earlier, fines were issued to public sector Bank of India, private sector Bandhan Bank, IDFC First Bank, and other institutions for not following regulatory norms.
The RBI also periodically reviews cooperative banks and often cancels their licenses for rule violations.
