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RBI penalises Nainital Bank and Ujjivan SFB for regulatory violations

RBI clarified that these penalties were imposed solely for regulatory lapses and do not affect the validity of any transactions between the banks and their customers.
The Reserve Bank of India (RBI) has imposed monetary penalties on Nainital Bank and Ujjivan Small Finance Bank for regulatory violations. Nainital Bank was fined Rs 20 lakh for non-compliance with RBI's directives on 'interest rate on advances', 'customer service in banks', and 'interest rate on deposits'. Ujjivan Small Finance Bank received a penalty of Rs 2 lakh for failing to adhere to RBI's guidelines on 'interest rate on advances'. These penalties were issued after the banks were found lacking in their adherence to the regulatory norms during statutory inspections. The actions underscore RBI's commitment to ensuring that financial institutions comply with established regulations to maintain the integrity of the banking system.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/rbi-monetary-penalty-nainital-bank-and-ujjivan-sfb-for-regulatory-violations-19559077.htm ]