RBI imposes a penalty of Rs 2.49 crore on three banks including Punjab & Sind

The Reserve Bank on Friday said it has imposed fines totaling Rs 2.49 crore on three banks, including Dhanlaxmi Bank and Punjab and Sind Bank, for violation of regulatory norms.

A penalty of Rs 1.20 crore has been imposed on Dhanlaxmi Bank for non-compliance with certain directions in the areas of ‘Loans and Advances Statutory and Other Restrictions’, KYC and certain norms relating to interest on deposits, the Reserve said Bank of India (RBI). .

Further, a penalty of Rs 1 crore has been imposed on Punjab and Sind Bank for non-compliance with certain directions relating to ‘Loans and advances, statutory and other restrictions’.

The central bank has also imposed a fine of Rs 29.55 lakh on ESAF Small Finance Bank for non-compliance with the directions issued by it on ‘Customer Service in Banks’.

The fines are based on the lapses in regulatory compliance and are not intended to adjudicate on the validity of any transaction or agreement entered into by the lenders with their customers, according to three separate statements by the RBI.

First print: January 13, 2024 | 12:12 pm IST