Banking & Insurance

RBI imposed heavy fines on 3 banks, including Paytm Payment Bank

RBI imposed heavy fine on banks

The Reserve Bank of India -RBI has imposed a fines of Rs 39 crore on Paytm Payments Bank and 3 cooperative banks in Maharashtra.

Paytm Payments Bank and three cooperative banks have been sanctioned by the Reserve Bank of India. According to RBI’s press release on Thursday, the names of the three cooperative banks are Janata Urban Co-operative Bank Limited (Y), Jawahar Urban Co-operative Bank Limited (Palghar) and Annasaheb Magar Co-operative Bank (Pune).

Paytm Payment Bank was fined for what reason?

Paytm Payment Banks Limited has been imposed fines Rs 5.39 crore by the Reserve Bank of India-RBI . A number of provisions of KYC, 2016, RBI guidelines regarding “Licensing of Payment Banks”, “Maximum End of Day Balance Increase” and “Reporting of Cyber Security Incidents” were not followed by the bank, the central bank claimed.

These cooperative banks were fined-RBI imposed fines on banks

Janata Urban Co-operative Bank Limited has been penalized with a fine of Rs 1 lakh for failing to adhere to regulations regarding the “Fraud Monitoring and Reporting Mechanism”. Similarly, The Jawahar Urban Co-operative banks Limited has also been imposed with a fines of Rs 1 lakh for violating KYC rules by RBI. Additionally, Annasaheb Magar Co-operative Bank has been fined Rs 4 lakh for engaging in non-profitable activities. This is due to the bank’s failure to comply with Reserve Bank guidelines on KYC, “Maintenance of Deposit Accounts – Primary Co-operative Banks” and “Income Recognition, Asset Classification, Provisioning and other related matters”.

There will be no impact on customers

Under Sections 47A (1) (c) read with Sections (46) (4) (i) and 56 of the Banking Regulation Act 1949, the Reserve Bank has taken action against all banks. This action has been taken in light of the shortcomings of the banks, which will not affect customers.

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