RBI Penalty on IndusInd Bank: Banks are often fined by the Reserve Bank of India (RBI) for non-compliance of rules. In this sequence, RBI has imposed a fine of Rs 27.30 lakh on IndusInd Bank for not following the rules related to interest rates on deposits. This was told in the information given by the central bank. RBI had issued a notice to the bank after a statutory inspection for supervisory evaluation of the financial position of the bank till March 31, 2023.
Saving accounts opened in the name of ineligible institutions
After considering the reply and additional presentation of IndusInd Bank, RBI found that the allegations related to opening of some savings accounts in the name of ineligible entities were proved correct. It is necessary to impose a penalty for this. However, RBI said that this penalty has been imposed on the shortcomings in regulatory compliance and its purpose is not to question the validity of any transaction or agreement made by IndusInd Bank with its customers.
Manappuram Finance fined Rs 20 lakh
In another case, the central bank has imposed a fine of Rs 20 lakh on Manappuram Finance for not complying with the provision of ‘Know Your Customer’ (KYC) rules. RBI said that a statutory inspection of the NBFC was conducted regarding its financial position as on March 31, 2023 and a notice was issued to the company. After considering the reply of Manappuram Finance to the notice, the central bank said that the company failed to verify the PAN of the customers from the verification facility of the issuing authority at the time of customer acceptance.
Order issued on December 16
The NBFC did not keep the information of the customers properly. They did not check the PAN number of the customers properly and gave more than one identification code to some customers, which is against the rules. The order was issued on December 16, 2024. The investigation found that the company had committed a major lapse in complying with the Reserve Bank of India’s (RBI) ‘Know Your Customer’ (KYC) rules.
What will be the impact on customers?
(Earlier too, RBI has imposed fines on many different banks for not following the rules. But let us tell you that such fines imposed by RBI on banks do not affect the customers. The transactions of customers with the bank continue smoothly as before. Nor does it have any impact on the benefits given to the customers by the bank.
