The Reserve Bank of India has taken severe penalties against three leading banks, including Bank of India, Canara Bank, and Jammu and Kashmir Bank Limited, on several occasions of defaulting on regulations. These penalties indicate the seriousness of the central bank in upholding transparency and strict compliance with banking regulations.
Bank of India Penalized ₹1 Crore: RBI imposed a monetary penalty of ₹1 crore on Bank of India for defaulting in transfer of eligible amount to the Depositor Education and Awareness Fund as stipulated time. This penalty was decided keeping in view of the findings in the Statutory Inspection for Supervisory Evaluation (ISE 2023). The bank put forth its version and oral arguments, but the bank was penalised for statutory inadequacies.
Canara Bank Penalised for ₹1.63 Crore: RBI imposed a penalty of ₹1.63 crore on Canara Bank for not adhering to guidelines issued in respect of priority sector lending and financial inclusion. The lapses were related to loan-related charges in specific priority sector loans, non-payment of interest on some savings accounts, and the existence of multiple savings accounts for the same customers. The penalties were issued following the ISE 2023 report, which showed these lapses in compliance.
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Jammu and Kashmir Bank Penalized ₹3.31 Crore: Jammu and Kashmir Bank was imposed with the maximum penalty of ₹3.31 crore on the grounds of several regulatory lapses. These include facilities granted by the bank allowing BSBDA account holders to open more than one savings bank account; failing to identify beneficial owners for certain accounts; and allowing loans which were not in accordance with applicable guidelines/directives. The bank also provided a working capital loan against subsidies receivable from the government, which was against statutory requirements.
It would be pertinent to note here that these penalties are specific to the regulatory and statutory compliances and do not affect any customer agreements or transactions. This again adds to the RBI’s vigilant approach toward ensuring that banks follow established norms to protect the financial ecosystem.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
Also read: SEBI Introduces ‘Dharohar’ – Preserving India’s Securities Market History
Published on: January 26, 2025 at 8.26 PM GMT.
Hydropower Project in Tibet:
India has expressed major concerns over the massive hydropower dam proposed to be built by China on the Yarlung Tsangpo river in Tibet. This would be thrice the size of the Three Gorges Dam, the world’s biggest hydroelectric dam, under construction on the Yangtze river. Ecological disbalance and downstream water scarcity can create problems with irrigation and access to drinking water in both India and Bangladesh.
As stated in Bhagavad Gita : (Bhagavad Gita 2.48)
सुखदुःखे समे कृत्वा लाभालाभौ जयाजयौ।
Treating happiness and distress, gain and loss, and victory and defeat equally.
28th January is celebrated as Data Privacy Day!
