New Delhi: The Reserve Bank of India (RBI) has imposed fines on leading banks and other financial institution in Kerala for rule violations. The affected organisations include Federal Bank, Punjab National Bank, Kosamattam finance( a gold loan company) , and Mercedes-Benz Financial Services.
Punjab National Bank has been fined Rs 72 lakh for various violations. They kept and charged for SMS services on mobile numbers that were not in use within the Core Banking Solution (CBS). The bank also made mistakes in determining interest rates for certain term deposits. Additionally, the Reserve Bank took action because the bank did not accurately specify the interest rates for MCLR-based loans.
The Federal Bank is facing a Rs 30 lakh penalty for not specifying the purchaser’s name on Demand Drafts (DDS) exceeding Rs 50,000 and breaching Know Your Customer (KYC) norms.
Kosamattam Finance faced penalties for not following the 75 percent loan-to-value norms in specific loan accounts in 2021–22. Furthermore ,Mercedes-Benz Financial Services also faces a monetary fine of Rs. 10 Lakh.