NEW DELHI: The Reserve Bank of India (RBI) has imposed penalties on Bank of India, Bandhan Bank, and Indostar Capital Finance Ltd for non-compliance with regulatory norms. Bank of India has been fined Rs 1.4 crore for violating the RBI‘s directions on interest rates, customer service, and provisions of Credit Information Companies Rules, 2006.
Bandhan Bank has been penalised Rs 29.55 lakh for non-compliance with certain directions. Indostar Capital Finance Ltd has been fined Rs 13.60 lakh for not adhering to the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’ and KYC provisions.
The penalties were imposed after the RBI conducted a statutory inspection to evaluate the banks’ financial positions. It is important to note that the penalties are for regulatory compliance issues and do not question the validity of any transactions or agreements with customers.
The RBI aims to ensure that banks and financial institutions adhere to the necessary regulations to maintain transparency and protect the interests of customers.
(With agency inputs)