New Delhi: The RBI has imposed financial penalty on City Union Bank, Tamilnad Mercantile Bank and two other lenders for contravention of sure instructions issued by the central financial institution.
A penalty of Rs 1 crore has been imposed on City Union Bank Limited for contravention of/non-compliance with sure provisions contained within the RBI (Lending to Micro, Small & Medium Enterprises (MSME) Sector) Directions, 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements.
In one other assertion, the RBI mentioned it has imposed penalty of Rs 1 crore on Tamilnad Mercantile Bank for non-compliance with sure provisions of instructions issued by it on Cyber Security Framework in Banks.
The Reserve Bank of India additionally imposed a penalty of Rs 90 lakh on Nutan Nagarik Sahakari Bank, Ahmedabad for non-compliance with instructions Interest Rate on Deposits, Know Your Customer (KYC) and Circular on Frauds Monitoring and Reporting Mechanism.
The apex financial institution has additionally imposed financial penalty of Rs 10 lakh on Daimler Financial Services India Private Limited, Pune for non-compliance with sure provisions of the instructions issued by RBI contained in ‘Reserve Bank Commercial Paper Directions 2017’ and ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’.
In every case, the RBI mentioned the penalties have been imposed primarily based on the deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by them with prospects.
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