The Reserve Financial institution of India (RBI) has imposed a Rs 72 lakh penalty on state-owned Punjab Nationwide Financial institution and a Rs 30 lakh tremendous on non-public sector lender Federal Financial institution for non-compliance with sure regulatory norms, the central financial institution stated on Friday. Aside from this, the RBI has additionally imposed a Rs 13.38 lakh penalty on Kosamattam Finance Ltd for a similar cause.
The RBI has additionally imposed a penalty of Rs 10 lakh on Mercedes-Benz Monetary Companies India Non-public Ltd (previously often called Daimler Monetary Companies India Non-public Ltd) for non-compliance with sure provisions of the Know Your Buyer (KYC) Course, 2016.
The penalty on Punjab Nationwide Financial institution has been imposed for non-compliance with sure provisions associated to ‘rate of interest on advances’ and ‘customer support in banks’, the RBI stated in an announcement.
Federal Financial institution has been penalised for contravention of sure provisions of KYC norms, the central financial institution stated in one other assertion.
The RBI additionally stated a financial penalty of Rs 13.38 lakh has been imposed on Kosamattam Finance Ltd, Kottayam, for non-compliance with sure provisions of the ‘Non-Banking Monetary Firm – Systemically Necessary Non-Deposit taking Firm and Deposit taking Firm (Reserve Financial institution) Instructions, 2016’.
In all circumstances, the central financial institution stated penalties are based mostly on deficiencies in regulatory compliance and are usually not supposed to pronounce upon the validity of any transaction or settlement entered into by the entities with their prospects.