The Reserve Bank of India (RBI) has taken decisive action against two prominent banks, imposing monetary penalties for non-compliance with regulatory directives.
Bank of India (BoI)
The RBI has levied a hefty monetary penalty of ₹1,40,76,000 on Bank of India. The penalty stems from the bank’s failure to adhere to specific directions issued by the RBI. Let’s break down the reasons behind this significant fine:
- Interest Rate on Deposits: BoI did not comply with the prescribed interest rates for certain term deposit accounts, as disclosed in advance.
- Customer Service: The bank charged SMS alert fees based on invalid mobile numbers, rather than actual usage.
- Interest Rate on Advances: BoI failed to reset interest rates in Marginal Cost of Funds Based Lending Rate (MCLR) and external benchmark-linked advances at the prescribed intervals.
- Credit Information Reporting: The bank inaccurately reported data related to certain large borrowers to the Central Repository of Information on Large Credits (CRILC) and failed to provide accurate information to Credit Information Companies (CICs).
The RBI invoked its powers under the provisions of the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005 to impose this penalty.
Bandhan Bank Ltd
Bandhan Bank also faces the consequences of non-compliance. The RBI has imposed a monetary penalty of ₹29.55 lakh on the bank for violating specific directions related to ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016.’
In summary, both Bank of India and Bandhan Bank must now reckon with the consequences of their actions. The RBI remains vigilant in ensuring adherence to regulations and maintaining the integrity of the banking system.
Disclaimer.:-This article is based on information available as of March 14, 2024, and is subject to any further updates or clarifications from the RBI.
Resources:- zeenews