Reserve Bank Slaps Penalties on Non-Compliant Banks

The Reserve Bank of India has imposed penalties totaling Rs 68.1 lakh on Nainital Bank, Ujjivan Small Finance Bank, and Shriram Finance for non-compliance with regulatory norms. The penalties stem from deficiencies in regulatory compliance and are not a judgment on the validity of any transactions.

The Reserve Bank of India (RBI) has levied financial penalties amounting to Rs 68.1 lakh on two banks — Nainital Bank and Ujjivan Small Finance Bank — and one non-banking entity, Shriram Finance, following violations of regulatory norms.

Nainital Bank was hit with a Rs 61.40 lakh penalty for failing to adhere to guidelines regarding 'Interest Rate on Advances' and 'Customer Service in Banks'. Meanwhile, Ujjivan Small Finance Bank incurred a Rs 6.70 lakh penalty due to lapses in following RBI directives on 'Loans and Advances - Statutory and Other Restrictions'.

Shriram Finance faced a Rs 5.80 lakh penalty for non-compliance with Know Your Customer (KYC) guidelines and the stipulated data format for credit information reporting. These penalties, as stated by the RBI, relate solely to regulatory deficiencies and do not question the legitimacy of any transactions.

(With inputs from agencies.)