RBI Penalty on Bank: The recent case shows how the arrogance of banks weighs heavily on the common man. This is why the Reserve Bank imposed a heavy fine on two private sector banks.
Delhi. How important the Reserve Bank is for the common man can be understood from this recent case. Seeing the loss being caused to the common man due to the arbitrariness of private sector 2 banks, RBI used its stick and imposed a fine of about Rs 2 crore. A penalty of Rs 1 crore has been imposed on one bank and Rs 91 lakh on the other. You will also be surprised to know about the arbitrariness of both the banks. On one hand, these banks were charging arbitrary fees from the common man citing rules and on the other hand, they were distributing loans to companies by breaking the rules.
According to the release issued by the Reserve Bank, RBI has imposed a fine of Rs 1 crore on the big private sector bank ICICI. At the same time, a penalty of Rs 91 lakh has been imposed on Yes Bank. Both the banks had violated the notification and regulation issued by RBI on March 31, 2022.
What mistake did ICICI Bank make?
The Reserve Bank found in its audit that ICICI Bank did not follow the rules while distributing the loan. The bank distributed loans to some institutions or companies without proper investigation. The projects of these companies were not eligible for adequate loans, yet the bank distributed the money. This put the loan at risk and the Reserve Bank imposed a fine of Rs 1 crore for breaking the rules.
Yes Bank has played a game
A few days ago, Yes Bank, which was on the verge of bankruptcy, saved itself due to the interference of the government and RBI and then started charging arbitrary fees from the common man. RBI in its audit found that Yes Bank collected arbitrary fees from customers in the name of not maintaining minimum balance. This fee was collected in the name of parking fund and customer transactions. RBI considered it against the rules and imposed a fine of Rs 91 lakh on the bank.
What does RBI rule say?
The Reserve Bank has clearly stated in the matter of loan that unless the applicant fully meets the eligibility criteria and does not provide any collateral for the risky loan, the loan should not be approved. Similarly, RBI has made clear rules regarding minimum balance and banks cannot charge arbitrary fees from customers for any service other than this.
