Reserve Bank imposes heavy fine on this big bank, complaints were received regarding deposits
A test was conducted by the Reserve Bank of India for audit valuation of the bank regarding the financial position of the bank as on March 31, 2023.
The Reserve Bank of India is the regulator of the country's banks 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, the Reserve Bank has taken action against another big bank and imposed a fine of lakhs of rupees on it.
The Reserve Bank of India (RBI) has imposed a fine of Rs 59.20 lakh on South Indian Bank for non-compliance with certain instructions on interest rates on deposits and customer services in banks. The bank has given this information. A test was conducted by the Reserve Bank of India for audit valuation of the bank regarding the financial position of the bank as on March 31, 2023.
A notice was issued to South Indian Bank Limited on the basis of non-compliance with RBI instructions and related correspondence. After considering the bank's reply to the notice and the verbal presentation made during the personal hearing, RBI found that the allegations leveled against the bank are correct, for which monetary fine or monetary penalty is required.
RBI said that South Indian Bank had imposed penalty and charges for not maintaining 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.
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 made by the bank with its customers.