RBI imposes penalty on City Union Bank, 3 other lenders

The RBI has imposed monetary penalty on City Union Bank, Tamilnad Mercantile Bank and two other lenders for contravention of certain directions issued by the central bank. A penalty of Rs 1 crore has been imposed on City Union Bank Limited for contravention of/non-compliance with certain provisions contained in the RBI (Lending to MSME Sector) Directions, 2017 and the circulars on the Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements.

In another statement, the RBI said it has imposed a penalty of  Rs 1 crore on Tamilnad Mercantile Bank for non-compliance with certain provisions of directions issued by it on the Cyber Security Framework in Banks.

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Other banks:

• The Reserve Bank of India also imposed a penalty of Rs 90 lakh on Nutan Nagarik Sahakari Bank, Ahmedabad for non-compliance with directions Interest Rate on Deposits, Know Your Customer (KYC) and Circular on Frauds Monitoring and Reporting Mechanism.
• The apex bank has also imposed a monetary penalty of Rs 10 lakh on Daimler Financial Services India Private Limited, Pune for non-compliance with certain provisions of the directions issued by RBI contained in ‘Reserve Bank Commercial Paper Directions 2017’ and ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’.

Important takeaways for all competitive exams:

• RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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