City Union Bank Fined by RBI: The Reserve Bank has taken major action against another bank. On Friday, the Reserve Bank said it had imposed a penalty of Rs 39 lakh on Citi Bank for non-compliance with instructions related to large loans and delay in providing relevant information to credit information companies. The Reserve Bank said the statutory inspection was conducted to assess the bank’s financial position as of March 31, 2023.
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City Union Bank Fined by RBI: Notice Was Issued
City Union Bank Fined by RBI: Based on supervisory findings of non-compliance with the instructions of the Reserve Bank and related correspondence in that regard, Citi Bank N.A. A notice was issued. In the notice, he was advised to show cause as to why a penalty should not be imposed on him for failing to comply with the said directions of the Reserve Bank.
After considering the bank’s response to the notice and the oral submissions made during the personal hearing, the Reserve Bank observed that the bank reported late cases of violation of directions relating to large loans and it did not upload revised figures related to certain segments within seven days of receiving rejection reports from credit information companies.
City Union Bank Fined By RBI: BOI Informed the Reserve Bank About loan Fraud
Public sector Bank of India (BOI) on Friday reported a fraud of Rs 226.84 crore by Odisha-based Gupta Power Infrastructure Limited to the Reserve Bank of India (RBI). BOI said in the information given to the stock market that the bank has informed that the non-performing asset (NPA) of Gupta Power Infrastructure Limited has been declared as fraud.
Action Against JM Financial Also
The Reserve Bank also imposed a penalty of Rs 1.50 lakh on JM Financial Home Loans Ltd for non-compliance with certain provisions of the ‘Non-Banking Financial Companies – Housing Finance Companies (Reserve Bank) Directions, 2021’.
Fine on Ashirwad Micro Finance Also
The Reserve Bank has also taken action against Ashirwad Micro Finance. The bank also failed to provide factsheets to some gold loan customers and did not set up a system of auto-escalation for all complaints, Those which were partially or completely rejected by its internal grievance redressal mechanism referred to the Internal Ombudsman for final decision. Due to these shortcomings, the Reserve Bank imposed a fine of Rs 6.20 lakh on the company.
Recently, Last Friday, the Reserve Bank of India imposed a total fine of Rs 68.1 lakh on two banks – Nainital Bank and Ujjivan Small Finance Bank – for violation of regulatory norms. A penalty of Rs 61.40 lakh was imposed on Nainital Bank Ltd for non-compliance with certain instructions on ‘interest rates on advances’ and ‘customer service in banks’, the RBI said in a statement. Further, a penalty of Rs 6.70 lakh was imposed on Ujjivan Small Finance Bank for non-compliance with certain directions issued by the RBI on ‘Loans and Advances – Statutory and Other Restrictions’.
#Citibank Faces ₹39 Lakh Penalty as #RBI Cracks Down on Violations. #Penalty #stockmarketsindia #JMFinancial #AsirvadMicroFinance #Monetary #ApexBank
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