RBI Fines Indian Bank and Mahindra & Mahindra for Regulatory Lapses

The Reserve Bank of India has imposed fines on Indian Bank and Mahindra & Mahindra Financial Services for regulatory breaches. Indian Bank faces a Rs 1.61 crore fine for violating laws related to interest rates and loans, while Mahindra & Mahindra was fined Rs 71.30 lakh for compliance failures.

The Reserve Bank of India (RBI) took decisive action on Friday, levying fines on Indian Bank and Mahindra & Mahindra Financial Services for falling short on regulatory compliance.

Indian Bank was penalized Rs 1.61 crore for contravening the Banking Regulation Act and failing to adhere to directives regarding 'Interest Rate on Advances', the 'Kisan Credit Card (KCC) Scheme', and lending practices for the MSME sector.

Similarly, Mahindra & Mahindra Financial Services Limited was fined Rs 71.30 lakh for ignoring specific provisions of the 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016' as well as Know Your Customer (KYC) requirements.

(With inputs from agencies.)