January 26: The Reserve Bank Of India (RBI) has imposed fines on three banks for violating the rules. Two government banks are included in the list, two government banks have been in this list, the central bank took this step for what reason?
The Reserve Bank of India (RBI) has taken strict action against three banks and a non-banking finance company. A fine of Rs 3 crore 31 lakh 80 thousand has been imposed on Jammu and Kashmir Bank Limited. A fine of Rs 1 crore has been imposed on the Public Sector Bank of India and Rs 1 crore 63 lakh 70 thousand on Canara Bank. The central bank has imposed a monetary penalty of Rs 1 lakh on Datsun Exports Limited. RBI has given this information through a press report.
Why did they impose a fine?
Jammu and Kashmir Bank also allowed certain BSBDA holders to open savings bank deposit accounts. The bank did not identify the beneficial owner for opening accounts of certain legal persons who were not natural persons. The bank allowed operations in certain small accounts which did not meet regulatory requirements. Apart from this, the bank also sanctioned a working capital demand loan to a corporation against the amount received as a subsidy from the government.
Bank of India failed to transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period. Canara Bank charges loan-related charges in certain priority sector loans up to Rs 25000. No interest was paid on certain savings bank deposit accounts. Apart from this, the savings bank deposit account and basic savings bank deposit account of the same customer were maintained at the same time.
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