RBI Cracks Down: Major Penalties on Non-Compliant Banks

The Reserve Bank of India imposed monetary penalties on several banks, including Bank of Maharashtra, DCB Bank, and CSB Bank, for non-compliance with its directions. The fines revealed lapses such as improper data reporting and misuse of business correspondent arrangements. Navi Finserv and IIFL Finance also faced penalties.

The Reserve Bank of India (RBI) has taken stringent action against several financial institutions for failing to adhere to its regulations. Among the penalized are Bank of Maharashtra, DCB Bank, and CSB Bank, which face fines amounting to lakhs due to various compliance breaches.

Bank of Maharashtra was fined Rs 32.50 lakh for neglecting to report Self Help Group member-level data. Meanwhile, DCB Bank's penalty of Rs 29.60 lakh was linked to its failure to maintain the required loan-to-value ratio in certain gold loan accounts, revealing critical operational oversights.

CSB Bank, penalized Rs 63.60 lakh, was found arranging outside the permissible activities with business correspondents and levying undisclosed charges. Navi Finserv and IIFL Finance were also fined for similar non-compliances, reflecting RBI's resolve to ensure robust regulatory adherence in the financial sector.

(With inputs from agencies.)