State-owned Punjab National Bank (PNB), Federal Bank and two other banks were penalised for non-compliance with certain regulatory norms by the Reserve Bank of India on Friday. While a fine of Rs 72 lakh was imposed on PNB, private sector Federal Bank faced a penalty of Rs 30 lakh.
It 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’, Reserve Bank of India (RBI) said in a release. Federal Bank has been penalised for contravention of certain provisions of KYC norms, the central bank said in another release.
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.
(With inputs from PTI)
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