RBI imposes Rs. 2.5 Cr Penalty on Dhanlaxmi Bank, ESAF Bank, and Punjab & Sind Bank for Regulatory Violations
The highest penalty was imposed on Dhanlaxmi Bank of Rs. 1,27,47,000
RBI penalty news – Dhanlaxmi Bank penalty – ESAF bank – Punjab & sind bank – RBI penalties on financial institutions – Taxscan
RBI penalty news – Dhanlaxmi Bank penalty – ESAF bank – Punjab & sind bank – RBI penalties on financial institutions – Taxscan
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 2.5 crores on Dhanlaxmi Bank, ESAF Bank, and Punjab & Sind Bank which are 3 prominent banks in India over several non- compliances with the regulations on January 12th 2024.
Dhanlaxmi Bank:
The RBI has imposed a Penalty of Rs. 1,27,47,000 for the following Non-Compliances:
- Sanctioned loans exceeding 75% of the value of gold ornaments for non-agricultural purposes.
- Applied a lower interest rate on senior citizen term deposits.
- Failed to obtain PAN or Form 60 for certain term deposit accounts.
- Allotted multiple Customer Identification Codes instead of a Unique Customer Identification Code (UCIC) for individual customers.
ESAF Small Finance Bank:
ESAF was imposed with a penalty of Rs. 29.55 Lakh for the following non-compliances;
- Allowed Basic Savings Bank Deposit ( BSBD ) account holders to open regular savings accounts.
- Delayed the closure of certain savings accounts opened alongside BSBD accounts.
Punjab and Sind Bank:
The RBI imposed a Penalty of Rs. 1,00,00,000 ( one crore ) for the following Non-Compliances:
- Sanctioned a term loan to a corporation without due diligence on project viability.
- Used budgetary resources for loan repayment without ensuring project revenue sufficiency.
RBI imposed penalties based on identified non-compliances with specific directions, urging corrective actions from the banks.
To Read the full text of the Order CLICK HERE
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