Reserve Bank fined City Union Bank and three other banks
The Reserve Bank of India has imposed financial penalties on City Union Bank, Tamil Nadu Mercantile Bank and two other banks for violating some of its instructions. The Central Bank stated that violating certain provisions contained in the Reserve Bank (Credit to Micro, Small and Medium Enterprises Sector) Directive, 2017, and education loan scheme and loan flow for agriculture sector – agricultural credit – circulars related to margin / security requirements. But City Union Bank has been fined one crore rupees. The Reserve Bank said in another statement that it has also imposed a penalty of Rs 1 crore on Tamil Nadu Mercantile Bank for not complying with certain provisions of the directives issued by it regarding the cyber security structure in banks. The Reserve Bank has imposed a penalty of Rs 90 lakh on the Nutan civil co-operative bank of Ahmedabad for non-compliance with the interest rate on the deposit amount, instructions related to Know Your Customer (KYC) and fraud monitoring and reporting mechanism. Pune on violation of certain provisions of its instructions included in the Central Bank’s Commercial Bank Directive 2017 and Non-Banking Financial Company – Systematically Significant Non-Deposit Funding Company and Deposit Funding Company (Reserve Bank) Directions, 2016 Daimler Financial Services India Private Limited has also been fined Rs 10 lakh.
