Mumbai, February 13: The Reserve Bank of India (RBI) in an order dated January 31, 2019, imposed monetary penalty on leading public sector banks such as Bank of Baroda, Corporation Bank, SBI, and the Union Bank of India for non-compliance with directions issued by the RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds and other compliance issues. New Regulations for RBI? Narendra Modi Government Set to Change Functioning of RBI, Say Reports.
According to sources, RBI imposed monetary penalty of Rs 1 cr against Bank Of Baroda, State Bank Of India, Union Bank of India and penalty of Rs 2 cr against Corporation Bank. RBI Raises Collateral-Free Farm Loan Limit to Rs 1.6 Lakh.
The RBI, in a statement, said: “These penalties have been imposed in exercise of powers vested in RBI under the provisions of …the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI.
“This action is based on 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.”
In January, 2019,the Reserve Bank of India (RBI) had imposed a monetary penalty of Rs. 10 million on Bajaj Finance Limited for violation of Fair Practices Code. The action was based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the Non-Banking Financial Company (NBFC) Bajaj Finance Ltd with its customers, said the bank.