The Reserve Bank of India (RBI) has imposed a Rs 72 lakh penalty on state-owned Punjab National Bank and a Rs 30 lakh fine on private sector lender Federal Bank for non-compliance with certain regulatory norms, the central bank said on Friday. Apart from this, the RBI has also imposed a Rs 13.38 lakh penalty on Kosamattam Finance Ltd for the same reason.
The RBI has also imposed a penalty of Rs 10 lakh on Mercedes-Benz Financial Services India Private Ltd (formerly known as Daimler Financial Services India Private Ltd) for non-compliance with certain provisions of the Know Your Customer (KYC) Direction, 2016.
The penalty on Punjab National Bank has been imposed for non-compliance with certain provisions related to ‘interest rate on advances’ and ‘customer service in banks’, the RBI said in a statement.
Federal Bank has been penalised for contravention of certain provisions of KYC norms, the central bank said in another statement.
The RBI also said a monetary penalty of Rs 13.38 lakh has been imposed on Kosamattam Finance Ltd, Kottayam, for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’.
In all cases, the central bank said penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
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