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RBI slaps penalty on Federal Bank and Bank of India

RBI slaps penalty on Federal Bank and Bank of India
RBI slaps penalty on Federal Bank and Bank of India

 Content 

RBI has slapped penalty on two banks and one financial organisation.

 Penalty on Federal Bank: 

  • RBI has imposed a penalty of Rs 5.72 crore on Federal Bank for deficiencies in regulatory compliance.

 Penalty on Bank of India: 

  • An amount of Rs 70 lakh has also been imposed on Bank of India for non-compliance with certain provisions of Know Your Customer (KYC) norms and instructions on compliance function in banks.

 More information: 

  • Due to non-compliance with KYC norms RBI has imosed a fine of Rs. 7.6 lakh on Gurugram based Dhani Loans and Services Limited.
  • The penalities are based on the deficiencies in regulatory compliance.
  • It is not intended to pronounce upon the validity of any transaction or agreement entered into by the two banks and Dhani Loans and Services with their customers.

 What is Regulatory Compliance? 

  • Regulatory compliance is an organization’s adherence to laws, regulations, guidelines and specifications.
  • It is imortant to processes any business.
  • Violations of regulatory compliance may result in legal punishment, including federal fines.

 About federal Bank: 

  • Founded: 23 April 1931.
  • Founder: K.P Hormis.
  • Headquarters: Aluva, KOchi.
  • CEO of Federal Bank: Shyam Srinivasan.

 About Bank of India: 

  • Headquarters: Mumbai.
  • Founded: 7 September 1906.
  • Founder: Ramnarain Ruia.
  • MD & CEO: Atanu Kumar Das.

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