Strictness of RBI: Kotak Mahindra, IDFC First and PNB fined for violating rules

The Reserve Bank of India (RBI) has continued monitoring and taking action to ensure transparency in the banking system and following rules. In the same sequence, Kotak Mahindra Bank, IDFC First Bank and Punjab National Bank (PNB) have been fined for not following the rules. The RBI has clarified that this action has been taken on the basis of regulatory deficiencies and has no relation with the validity of any transaction with customers.

Kotak Mahindra Bank fined ₹ 61.4 lakh

• The fine has been imposed due to a violation of bank credit delivery system and statutory rules related to loan and advance.

• The RBI said that this is the action of administrative nature, which does not affect the bank’s customer transactions.

IDFC First Bank fined ₹ 38.6 lakh

• The bank did not follow KYC (Know your customer) guidelines.

• The KYC rules are necessary to verify the identity of customers and maintain the transparency of financial transactions.

• RBI fined it as regulatory violations.

Punjab National Bank (PNB) fined ₹ 29.6 lakh

• The fine has been imposed due to violation of instructions related to customer service.

• RBI says that PNB failed to follow the standards set in services offered to customers.

RBI clarification

• All three banks are based on ignoring the rules.

• Their purpose is to make banks more vigilant and responsible for rules.

• These fines do not affect the validity of transactions or agreements between banks and customers.

What will be the effect on customers?

• The RBI has clarified that the fine has been imposed only due to the flaws of the banking process.

• This will not affect banking services or facilities being provided to customers.

• Customers will continue to receive banking services uninterrupted as before.

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