New Delhi: The Reserve Bank of India (RBI) imposed a financial penalty of Rs 1,40,76,000 on Bank of India for non-compliance with sure instructions issued by RBI on ‘Interest Rate on Deposits’, ‘Customer Service in Banks’, ‘Interest Rate on Advances’, ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, and ‘Membership of Credit Information Companies (CICs)’ and contravention of provisions of Credit lnformation Companies Rules, 2006 (ClC Rules).
“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51(1) of the Banking Regulation Act, 1949 and section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005,” RBI added.
The Statutory Inspection for Supervisory Evaluation of the financial institution was performed by RBI close to its monetary place as on March 31, 2021 (ISE 2021) and March 31, 2022 (ISE 2022).
RBI mentioned that the financial institution didn’t pay curiosity in sure time period deposit accounts as per the schedule of rates of interest disclosed upfront. It had levied SMS alert fees from prospects based mostly on invalid cellular numbers and never on precise utilization foundation. BOI didn’t reset rates of interest in MCLR and exterior benchmark linked advances at prescribed periodicity and didn’t benchmark the curiosity on sure floating price retail loans and floating price loans to MSME, to an exterior benchmark price. Further, RBI mentioned that BOI didn’t report or inaccurately reported information pertaining to sure massive debtors to CRILC and didn’t furnish correct data to Credit Information Companies (CICs).
The central financial institution has additionally imposed a financial penalty of Rs 29.55 lakh on Bandhan Bank Ltd for non-compliance with sure instructions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949,” RBI mentioned in a launch. RBI mentioned that it discovered inter alia that the cost pertaining to opening of financial savings deposit account of an ineligible entity was sustained.
Source: zeenews.india.com
