RBI Action: Reserve Bank imposed heavy fine on this famous bank, complaints were received regarding deposits

RBI Action On Bank: The Reserve Bank of India is the regulator of the banks of the country and keeps taking action on any irregularities found in the banks. From time to time, there are reports of the Reserve Bank taking action against many banks and financial institutions. In the latest news, Reserve Bank has taken action against another big bank and has imposed a fine of lakhs of rupees on it.

Reserve Bank imposed a fine of Rs 59.20 lakh on South Indian Bank

The Reserve Bank of India (RBI) has imposed a fine of Rs 59.20 lakh on South Indian Bank for lapses in compliance with some instructions on interest rates on deposits and customer services in banks. The bank has given this information. Regarding the financial position of the bank till March 31, 2023, a test was conducted by the Reserve Bank of India for the audit value of the bank.

RBI had issued notice to South Indian Bank

A notice was issued to South Indian Bank Limited on the basis of non-compliance of RBI instructions and related correspondence. After considering the bank’s response to the notice and the verbal presentation made during the personal hearing, RBI found that the allegations made against the bank are true and warrant imposition of monetary penalty.

Why was the penalty imposed on South Indian Bank?

RBI said that South Indian Bank had imposed penalties and charges for non-maintenance of minimum balance/average minimum balance amount without informing some customers through SMS or e-mail or letter. Against this, RBI has taken this action against the bank.

What did RBI say

RBI said that this penalty is based on deficiencies in statutory and regulatory compliance. Its purpose is not to affect the validity of any transaction or agreement entered into by the Bank with its customers.

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