The Reserve Bank of India (RBI) has taken action by imposing monetary penalties on Punjab National Bank, Federal Bank, Mercedes-Benz Financial Services India, and Kosamattam Finance for non-compliance with the central bank's regulations.
The imposed fines are as follows:
- Punjab National Bank: A penalty of Rs 72 lakh for various violations, including the levying of SMS charges on certain accounts despite having invalid mobile numbers in the Core Banking Solution, not strictly adhering to pre-disclosed interest rates in specific term deposit accounts, and failing to specify the interest reset date in MCLR-linked loans.
- Federal Bank: A fine of Rs 30 lakh for issuing demand drafts of Rs 50,000 and above without including the purchaser's name on the drafts.
- Kosamattam Finance: A penalty of Rs 13.38 lakh for not maintaining a loan-to-value ratio of 75 percent in certain loan accounts.
- Mercedes-Benz Financial Services India: A fine of Rs 10 lakh for not conducting due diligence on its customers and failing to update Know Your Customer (KYC) information for high-risk customers.
These penalties reflect the RBI's commitment to ensuring that financial institutions adhere to regulatory guidelines and maintain the integrity of the financial system in India.
(With Agency Inputs)
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