The Reserve Bank of India (RBI) imposed monetary penalties – ranging between Rs 50 lakh to Rs 2 crore, on 14 banks including the State Bank of India (SBI), Punjab and Sind Bank, and Bandhan Bank, among others, for violation of various rules, including one related to “Frauds – Classification and Reporting”. These 14 banks include private banks, public sector banks, co-operative banks, foreign banks, and also a small finance bank.
The violations include non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’ ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ and ‘Loans and Advances – Statutory and Other Restrictions’, the central bank said in its statement.
The action by the RBI is based on the deficiencies in regulatory compliance and will not affect the customer-related activities of any of these banks, such as the validity of any transaction.