RBI Fines 211 Entities Rs 40 Cr In 2022-23
The Reserve Bank of India (RBI) levied fines totaling Rs 40.29 crore on 211 banks and entities, Minister of State for Finance Bhagwat Karad informed the Lok Sabha on Monday. Among these, cooperative banks bore the brunt with 176 penalties amounting to Rs 14.04 crore.
Karad's data revealed that cooperative banks faced the most penalties, followed by 11 fines on non-banking financial companies (NBFCs) and seven each on private sector banks and public sector banks. The penalties amassed to Rs 11 crore for NBFCs, Rs 12.17 crore for private banks, and Rs 3.65 crore for public banks.
Karad highlighted the RBI's inspections under various statutes like the Banking Regulation Act, 1949, and the Reserve Bank of India Act, 1934. These inspections, aided by enhanced capabilities both on-site and off-site, have expanded in focus and depth in recent times.
Detailing the supervisory assessments, Karad emphasised the RBI's scrutiny of compliance with its guidelines, initiating corrective measures for any non-compliance. The central bank takes necessary actions including enforcement actions when required.
The report showcased fines imposed on foreign banks (Rs 4.65 crore), small finance banks (Rs 0.97 crore for two penalties), housing finance companies (Rs 0.10 crore for two penalties) and a single penalty of Rs 0.42 crore on a regional rural bank.
Karad noted the RBI's issuance of fair practices guidelines for banks, NBFCs and HFCs, covering multiple lending aspects, such as transparency in terms and conditions, appropriate behaviour during loan recovery and loan appraisal processes.
