RBI imposes fine on Dhanlaxmi Bank, ESAF Small Finance Bank, Punjab and Sind Bank over non-compliances

  • According to the official statement, a fine of 29.55 lakh, 6 lakh, and 1 crore, respectively, has been slapped against these three banks.

Written By Saurav Mukherjee
Updated12 Jan 2024
The actions against these banks were taken based on deficiencies in regulatory compliances. mint
The actions against these banks were taken based on deficiencies in regulatory compliances. mint

The Reserve Bank of India (RBI) on 12 January imposed monetary penalties, of varying degrees, against ESAF Small Finance Bank, Dhanlaxmi Bank, and Punjab and Sind Bank over various non-compliances.

According to the official statement, a fine of 29.55 lakh, 6 lakh, and 1 crore, respectively, has been slapped against these three banks.

A penalty of 1.20 crore has been slapped on Dhanlaxmi Bank for non-compliance with certain directions on 'Loans and Advances – Statutory and Other Restrictions', KYC, and certain norms related to the interest rate on deposits, the Reserve Bank of India (RBI) said, adding, "This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

ALSO READ: RBI waives 5 crore penalty imposed on Bank of Baroda over shortfall in soiled note remittances

Further, a fine of 1 crore has been imposed on Punjab and Sind Bank for non-compliance with certain directions on 'Loans and Advances – Statutory and Other Restrictions'.

The central bank has also imposed a penalty of 29.55 lakh on ESAF Small Finance Bank for non-compliance with its directions on 'Customer Service in Banks'.

The RBI said that the actions against these banks were taken based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Earlier on 11 January, RBI decided to waive the 5 crore penalty on state-owned lender Bank of Baroda (BOB) that was previously imposed on it due to a shortfall in soiled note remittances.

On December 22, 2023, BOB revealed that the Reserve Bank had fined the lender 5 crore. The penalty was attributed to a shortfall in soiled note remittances, indicating issues with handling notes that had undergone normal wear and tear.

With agency inputs. 

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