RBI penalizes PNB, Federal Bank for violating KYC norms
RBI has imposed penalties on several entities for non-compliance with regulatory norms. Punjab National Bank (PNB), Federal Bank, Mercedes-Benz Financial Services India Private Ltd, and Kosamattam Finance Ltd have been fined. The penalties are Rs. 72 lakh, Rs. 30 lakh, Rs. 10 lakh, and Rs. 13.38 lakh, respectively. The central bank emphasizes that these penalties are based on deficiencies in regulatory compliance. They do not question the validity of any transactions or agreements between the entities and their customers.
PNB and Federal Bank penalized for non-compliance
State-owned PNB has been fined for non-compliance with provisions concerning 'interest rate on advances' and 'customer service in banks.' Meanwhile, private sector Federal Bank has been penalized for contravening certain provisions of the Know Your Customer (KYC) norms. The RBI states that these penalties are a result of non-compliance with regulatory requirements. They aim to ensure adherence to KYC regulations and maintain the integrity of financial transactions.
Mercedes-Benz Financial Services violated KYC Direction, 2016
Mercedes-Benz has been imposed a penalty for non-compliance with certain provisions of the KYC Direction, 2016. On the other hand, Kottayam-based Kosamattam Finance Ltd has been penalized for non-compliance with 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.' These penalties underscore the importance of compliance with regulations in both the banking and non-banking financial sectors.
