RBI fines these financial institutions!

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Mumbai, Oct 13 (PTI) The Reserve Bank of India on Friday said it has imposed penalties on Union Bank of India, RBL Bank, and Bajaj Finance Ltd for non-compliance of regulatory norms. In a statement, the Reserve Bank of India (RBI) said Rs 1 crore penalty has been imposed on state-run Union Bank of India for contravention of its directions related to ‘Loans and Advances – Statutory and Other Restrictions’. A penalty of Rs 64 lakh has been slapped on private sector RBL Bank Ltd for non-compliance with certain directions of the RBI (Prior approval for acquisition of shares or voting rights in private sector banks) Directions, 2015, the central bank said in another statement. In another release, it said penalty of Rs 8.5 lakh has been imposed on Bajaj Finance Ltd for non-compliance with the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’. In all cases, the RBI added that penalties were based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their respective customers. Meanwhile, the central bank also said it has approved the scheme of amalgamation of The Suvikas People’s Co-operative Bank Ltd, Ahmedabad, with The Kalupur Commercial Co-operative Bank Ltd, Ahmedabad. The scheme will come into force from October 16. The branches of The Suvikas People’s Co-operative Bank Ltd will function as branches of Kalupur Commercial Co-operative Bank from October 16.