RBI imposes Rs 2.27 crore penalty on RBL Bank

The Reserve Bank of India on Monday said it has imposed a penalty of Rs 2.27 crore on RBL Bank Ltd for non-compliance with norms related to recovery agents.

In a statement, the Reserve Bank of India (RBI) said the penalty has been imposed for non-compliance with certain provisions of the directions issued by it on ‘Internal Ombudsman Scheme, 2018’, ‘Fair Practices Code for Lenders’, ‘Credit Card Operations of Banks’, ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Recovery Agents engaged by Banks’.

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RBI, however, said the penalty is based on the deficiencies in regulatory compliance observed relating to the period fiscal 2018-19 to 2021-22 and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Meanwhile, the central bank has also imposed penalties on several cooperative banks for contravention of its different norms.

The cooperative banks on which penalties have been imposed include Lokmangal Co-operative Bank, Solapur; Jila Sahakari Kendriya Bank Maryadit, Raisen; Smriti Nagrik Sahakari Bank Maryadit, Mandsaur; Raigad Sahakari Bank, Mumbai; Noble Co-operative Bank, Noida; and Imperial Urban Co-operative Bank, Jalandhar.

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The penalties are based on the deficiencies in regulatory compliance is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, RBI said.