RBI Imposes Fines on RBL Bank, Union Bank and Bajaj Finance

On October 13th, the Reserve Bank of India (RBI) took action by imposing significant fines on RBL Bank Limited, Union Bank of India, and Bajaj Finance Limited for their failure to comply with RBI guidelines. The penalties included a ₹64 lakh fine on RBL Bank Limited, a ₹1 crore fine on Union Bank of India, and an ₹8.50 lakh fine on Bajaj Finance Limited. These measures highlight the importance of adherence to regulatory guidelines in the financial sector.

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RBI Imposes Monetary Penalty On Union Bank of India

The Reserve Bank of India imposed a hefty ₹1 crore penalty on the Union Bank of India due to its non-compliance with specific directives. The RBI emphasized that the bank had granted a term loan to a corporation in place of or as a substitute for budgetary resources allocated for certain projects. This loan was sanctioned without a proper assessment of the viability and bankability of the projects. Additionally, UBI did not adequately assess whether the revenue generated from these projects would be sufficient to meet the debt servicing obligations. This penalty serves as a reminder of the importance of following regulatory guidelines in the banking sector.

RBI Imposes Monetary Penalty On RBL Bank

RBL Bank received a penalty of ₹64 lakh because it did not obtain the annual declaration in Form B from one of its major shareholders. The bank failed to secure this declaration within one month of the close of the three financial years, which included FY19, FY20, and FY21. Furthermore, the bank was unable to provide certificates to the RBI regarding the continuity of the ‘fit and proper’ status of one of its major shareholders by the end of September for the same three financial years. The Reserve Bank of India emphasized that this penalty was imposed due to regulatory compliance deficiencies and does not intend to pass judgment on the validity of any transactions or agreements entered into by the bank with its customers.

RBI Imposes Monetary Penalty On Bajaj Finance

Bajaj Finance Limited received a penalty of ₹8.50 lakh due to deficiencies in regulatory compliance, particularly in reporting certain frauds to the RBI. The fine was imposed after the RBI considered the company’s response and oral submissions made during personal hearings. It underlines the importance of timely and accurate reporting of financial irregularities to regulatory authorities.

Shubham Mittal

Shubham Mittal is a renowned current affairs writer and expert in government exam preparation, inspiring readers with insightful articles and guiding aspirants with his expertise.

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