RBI imposes Rs 22 lakh fine on DCB Bank for violating marketing norms

By: |
October 29, 2020 4:49 PM

RBI had conducted an off-site examination of the records related to para-banking activity in a matter of default on the National Spot Exchange Ltd (NSEL).

These references are under examination and will be clarified separately by means of a set of frequently asked questions (FAQs).

Private sector lender DCB Bank on Thursday said RBI has imposed a fine of Rs 22 lakh on the bank for violating marketing norms for financial products.

The Reserve Bank imposed the penalty by an order dated October 28, DCB Bank said in a BSE filing.

“The RBI has…imposed a monetary penalty of Rs 22 lakh on DCB Bank for non-compliance with certain provisions of directions issued by RBI contained in the circular on ‘Marketing/distribution of mutual fund/insurance etc., products by banks’ dated November 16, 2009,” the RBI order attached with the filing said.

The central bank said the penalty has been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” RBI said.

RBI had conducted an off-site examination of the records related to para-banking activity in a matter of default on the National Spot Exchange Ltd (NSEL).

The off-site examination and the related correspondence revealed non-compliance with the relevant directions issued by RBI. Thus, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions, the RBI order said.

“After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty,” it said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Why traditional banks need to partner with fintech firms for delivering essential banking solutions
2Paytm to not charge any fee on wallet payments for merchants; move to benefit 1.70 crore users
3Let us declare NPAs, banks to Supreme Court; govt pleads against sector-specific relief