On Friday, the Reserve Bank announced that it has levied a penalty of Rs 1.27 crore on the Bank of Maharashtra for non-adherence to its directives, including those related to Know Your Customer norms.
The Reserve Bank of India, through an order issued on Aug. 8, 2024, imposed a monetary penalty of Rs 1.27 crore on the Bank of Maharashtra for failing to comply with specific RBI directions on 'Loan System for Delivery of Bank Credit', 'Cyber Security Framework in Banks', and 'Know Your Customer', as per the central bank's statement.
Upon reviewing the bank's response to the notice, the oral submissions during the personal hearing, and the examination of further submissions, the RBI concluded that the charges against the bank were substantiated, justifying the imposition of a monetary penalty.
Furthermore, the RBI has levied a monetary penalty of Rs 4.90 lakh on Hinduja Leyland Finance Ltd for failing to adhere to specific provisions of the Know Your Customer Directions, 2016.
The action is based on a deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers, it said in a separate statement.
The central bank has also imposed a monetary penalty of Rs 10 lakh on Poonawalla Fincorp Ltd 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'.
Upon reviewing the company's response to the notice, the oral submissions during the personal hearing, and the examination of further submissions, the RBI concluded that the charge against the company was substantiated, necessitating the imposition of a monetary penalty, as stated by the RBI.
The company levied interest on loans starting from dates before the actual disbursement of the loans, which contradicted the terms and conditions communicated to the customers, the statement further explained.
(With PTI Inputs)
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