In the fiscal year 2022-23, the Reserve Bank of India (RBI) imposed penalties totaling Rs 40.39 crore on banks, non-banking financial companies (NBFCs), and other entities for breaching norms, revealed Minister of State for Finance Bhagwat Karad in a Lok Sabha response.
Cooperative banks faced 176 cases, leading to fines amounting to Rs 14.04 crore. Private sector banks incurred penalties of Rs 12.17 crore, while public sector banks (PSBs) faced fines of Rs 3.65 crore. Foreign banks and NBFCs were fined Rs 4.65 crore and Rs 4.39 crore, respectively.
The RBI, following its Enforcement Policy and Framework approved by the Board for Financial Supervision, exercises enforcement actions, including monetary penalties, for violations across statutes and directives. Karad highlighted the RBI's guidelines on fair practices code for banks, NBFCs, and HFCs, covering diverse lending aspects.
Key Points:
1. The Reserve Bank of India (RBI) disclosed penalties amounting to Rs 40.39 crore imposed on multiple entities including banks, NBFCs, and others for norm violations in the fiscal year 2022-23.
2. Cooperative banks comprised 176 cases leading to fines worth Rs 14.04 crore, while private sector banks faced penalties of Rs 12.17 crore. Public sector banks were fined Rs 3.65 crore, foreign banks Rs 4.65 crore, and NBFCs Rs 4.39 crore.
3. Mandated by its Enforcement Policy and Framework, RBI enforces monetary penalties on regulated entities for contraventions of statutes and directions, as stated by Minister Bhagwat Karad in a Lok Sabha reply.
4. RBI's guidelines focused on fair practices code adoption by banks, NBFCs, and HFCs, encompassing diverse lending aspects, the Minister further highlighted.
5. The penalties reflect RBI's adherence to enforcing compliance and regulatory standards across various financial entities, ensuring adherence to specified guidelines and directives.
(With Agency Inputs)
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