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RBI Imposes Penalty: On behalf of the RBI, Kotak Mahindra Bank, IDFC Bank and Punjab National Bank have been fined and have been fined. RBI said that they had to take these steps due to some flaws in regulatory compliance. A statement issued by the central bank said that in addition to guidelines on the loan system for bank loan distribution, banks have imposed a penalty of Rs 61.4 lakh for not following some guidelines on loan and advance, statutory and other restrictions.
In another statement, RBI said that a fine of Rs 38.6 lakh has been imposed on IDFC Bank for not following some of KYC (KNOW Your Customer).
RBI action
Apart from this, a penalty of 29.6 lakh has been imposed on the Punjab National Bank on behalf of the Central Bank. This has been done by RBI due to non -compliance of the instructions issued on these banks.
In these three cases, the central bank said that this punishment has been done on deficiencies in regulatory compliance and it is not aimed at deciding the validity of any transaction or agreement made by the banks with its customers.
RBI instructions on deposits, accounts
The RBI said on Thursday that banks can open/close the rupee account (interest free) in the name of their foreign branches or representatives without informing the central bank. However, the apex bank said in the ‘Master’ directive issued on the deposit and account that the RBI will need special approval to open money accounts in the name of branches of Pakistani banks operated outside Pakistan.
It further states that depositing in the account of a migrant bank is an approved method of payment to migrants. Therefore, it is subject to the rules applied to transfer to foreign currency. RBI said that withdrawal from a migrant bank account is actually a remittance of foreign currency.
On the funding of migrant banks, RBI said that banks can buy foreign currency independently at the market rates from their foreign representatives/branches to keep the amount in their accounts to meet their real needs in India. However, the transactions in the accounts should be strictly monitored to ensure that foreign banks do not adopt a betting view on Indian rupees. Any such case should be reported to the Reserve Bank.
