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Reserve Bank of India on Wednesday penalised 14 banks for contravening provisions related to bank lending to non-bank finance companies and maintaining data on large exposures. In a press release RBI said that the penalty was imposed following a “scrutiny in the accounts of the companies of a group" by the regulator. While the name of the group has not been disclosed, RBI has named the 14 banks on which the penalty has been imposed. This includes Bandhan Bank, Bank of Baroda, Bank of Maharashtra, Central Bank of India, Credit Suisse, Indian Bank, Indusind Bank, Karnataka Bank, Karur Vysya bank, Punjab and Sind Bank, South indian Bank, State Bank of India, Jammu & Kashmir Bank, Utkarsh Small Finance Bank.

“RBI has imposed monetary penalty on fourteen banks, as detailed below, for 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)’, ‘Loans and Advances – Statutory and Other Restrictions’, ‘Creation of a Central Repository of Large Common Exposures – Across Banks’ read with the contents of Circular on ‘Reporting to Central Repository of Information on Large Credits (CRILC)’, ‘Operating Guidelines for Small Finance Banks’ and for contraventions of provisions of Section 19(2) and Section 20 (1) of Banking Regulation Act, 1949," said RBI in its press release.

RBI has imposed a penalty ranging from 50 lakh to 2 crore on these banks for failing to comply with the regulatory provisions.

“The replies received from the banks, oral submissions made in the personal hearings, wherever sought by the banks, and examination of additional submissions, where made, were duly considered, and to the extent the charges of non-compliance with RBI directions/contraventions of provisions of Banking Regulation Act, 1949 were sustained, RBI concluded that it warranted imposition of monetary penalty on aforementioned fourteen banks," it said.

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