Know Why RBI Has Penalized City Union Bank & 3 More Banks

Know Why RBI Has Penalized City Union Bank & 3 More Banks

The RBI has forced financial punishment on City Union Bank, Tamilnad Mercantile Bank, and two different loan specialists for the negation of specific bearings given by the national bank. A punishment of Rs 1 crore has been forced on City Union Bank Limited for the contradiction of/rebelliousness with specific arrangements contained in the RBI (Lending to Micro, Small and Medium Enterprises (MSME) Sector) Directions, 2017 and the fliers on Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements. 

In another articulation, the RBI said it has forced punishment of Rs 1 crore on Tamilnad Mercantile Bank for rebelliousness with specific arrangements of headings gave by it on Cyber Security Framework in Banks. The Reserve Bank of India additionally forced a punishment of Rs 90 lakh on Nutan Nagarik Sahakari Bank, Ahmedabad for rebelliousness with headings Interest Rate on Deposits, Know Your Customer (KYC) and Circular on Frauds Monitoring and Reporting Mechanism. 

The peak bank has likewise forced money related punishment of Rs 10 lakh on Daimler Financial Services India Private Limited, Pune for rebelliousness with specific arrangements of the headings gave by RBI contained 'Available for later Bank Commercial Paper Directions 2017' and 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016'. For each situation, the RBI said the punishments were forced dependent on the insufficiencies in administrative consistency and is not planned to articulate upon the legitimacy of any exchange or arrangement went into by them with clients.

 

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