The Reserve Bank of India (RBI) is responsible for regulating the country’s banks and regularly takes action against any irregularities.
Recently, RBI has imposed a fine on a major bank for failing to follow certain banking rules.
Fine of Rs 59.20 Lakh on South Indian Bank
RBI has fined South Indian Bank Rs 59.20 lakh for not following its instructions on deposit interest rates and customer services.
The bank provided this information after the RBI conducted an audit of its financial position as of March 31, 2023.
Reasons Behind the Fine
The RBI had earlier issued a notice to South Indian Bank for not following its directions. The bank responded to the notice,
and after a personal hearing, the RBI found that the bank had failed to comply with important rules. This led to the fine.
RBI said that the fine was imposed because the bank did not inform some customers about penalties for not maintaining the required balance.
The bank failed to notify these customers through SMS, email, or letters, which is why RBI took action.
RBI’s Statement on the Penalty
RBI clarified that the fine was for failing to meet regulatory requirements.
It added that this penalty does not affect the validity of any transactions or agreements made by the bank with its customers.
