Srinagar- The Reserve Bank of India (RBI) imposed a monetary penalty on three leading banks for non-compliance with certain directions issued by the regulatory body.
The RBI, however, said penalities are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
Bank of Maharashtra (BoM) was slapped with a fine of Rs 1.45 crore, Axis Bank a penalty to the tune of Rs 30 lakh and Rs 2.5 crore on Jammu and Kashmir Bank. The penalties were imposed on June 22nd in these three banks.
RBI imposed a penalty of Rs 1.45 crore on BoM for violations related to sanctioning of certain loans and failure to implement required control measures for ATMs relating to end-to-end encryption of communication between the ATM terminal/PC and the ATM Switch, the RBI said.
The J&K Bank, according to reports, was slapped Rs 2.5 crore penalty for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures-Across Banks’, read with ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, ‘Loans and Advances – Statutory and other Restrictions’ and ‘Time-bound implementation and strengthening of SWIFT-related operational controls’ for the years 2019-2020.
JK Bank insiders say bank has strictly been following all regulatory guidelines for last three years.
In another statement, the RBI said a penalty of Rs 30 lakh has been imposed on Axis Bank. The lender, it said had levied penal charges in certain accounts for late payment of credit card dues though the customers had paid the dues by the due date, through third-party platforms. With inputs from PTI
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