The Reserve Bank of India (RBI) on Friday said it has imposed penalties on Indian Bank and Mahindra & Mahindra Financial Services for certain deficiencies in regulatory compliance.
A penalty of Rs 1.61 crore has been imposed on Indian Bank for contravention of certain provisions of Banking Regulation Act and non-compliance with some directions on ‘Interest Rate on Advances’, ‘Kisan Credit Card (KCC) Scheme’ and ‘Lending to Micro, Small and Medium Enterprises (MSME) Sector’.
In another release, the RBI slapped a fine of Rs 71.30 lakh on Mahindra & Mahindra Financial Services Limited for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ and Know Your Customer Directions.
In both cases, the central bank said penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
