Priyanka Tiwari
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The Reserve Bank of India (RBI) continues to take strict action against banks that fail to comply with regulatory guidelines. Following the recent six-month ban on New India Co-operative Bank (NICB), the RBI has now imposed financial penalties on Nainital Bank and Ujjivan Small Finance Bank for regulatory violations.
Nainital Bank Penalized Rs 61.40 Lakh
According to an official statement from the RBI, Nainital Bank Limited has been fined Rs 61.40 lakh for failing to adhere to certain directives related to loan interest rates and customer service regulations. Additionally, Ujjivan Small Finance Bank has been penalized Rs 6.70 lakh for non-compliance with specific RBI guidelines. These fines follow previous penalties imposed on major banks like HDFC and ICICI for similar infractions.
Shriram Finance Fined Rs 5.80 Lakh
In addition to the banking penalties, the RBI has also fined non-banking financial company (NBFC) Shriram Finance Rs 5.80 lakh. This penalty was imposed due to inadequate adherence to Know Your Customer (KYC) processes and deficiencies in credit information management.
Ban on New India Co-operative Bank
Earlier, on Thursday, the RBI imposed a six-month ban on the operations of Mumbai-based New India Co-operative Bank. Following the announcement, a surge of customers was seen forming long queues outside the bank’s branches, attempting to withdraw their funds.
Restrictions on Withdrawals
Due to concerns about the bank's financial health and liquidity issues, the RBI has prohibited withdrawals from customer accounts. This restriction will remain in effect for the next six months. The RBI stated, "In view of the current cash position of the bank, depositors will not be allowed to withdraw any amount from their savings, current, or any other accounts."
Impact on Customers
While penalties imposed by the RBI serve as a regulatory measure, they do not directly impact customers' daily banking activities. Customers can continue transacting with these banks as usual, as the fines are intended to ensure compliance rather than disrupt customer services.
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