RBI imposes penalties on Federal Bank, Bank of India
Mumbai, July 8
The RBI on Friday said it has imposed a penalty of Rs 5.72 crore on Federal Bank for deficiencies in regulatory compliance. A penalty of Rs 70 lakh has also been imposed on Bank of India for non-compliance with certain provisions of KYC norms and instructions on ‘compliance function in banks’ issued by RBI, it said.
About Federal Bank, RBI said the bank failed to ensure that no incentive (cash or non-cash) was paid to its staff engaged in insurance broking/corporate agency services by the insurance company, according to a separate statement. RBI had carried out Statutory Inspection for Supervisory Evaluation of the bank with reference to its financial position as on March 31, 2020.
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