The Reserve Bank of India on Monday imposed fines on five entities, including CSB Bank Ltd., Union Bank of India and Muthoot Housing Finance Co., for violating various regulatory guidelines.
CSB Bank has been fined Rs 1.86 crore for failing to comply with the RBI directions on 'Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks' and the 'Master Circular on Branch Authorisation'.
The RBI also announced a penalty of Rs 1.06 crore against Union Bank of India for failing to adhere to regulations on 'Creation of a Central Repository of Large Common Exposures-Across Banks' and 'Know Your Customer '.
A fine of 5 lakh has been imposed on Muthoot Housing Finance for non-compliance with certain provisions of the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021, the central bank said in another release.
The RBI has also imposed a penalty of Rs 5 lakh on Nido Home Finance Ltd. and Rs 3.1 lakh on Ashoka Viniyoga Ltd. for non-compliance with norms.
In each case, the RBI said, penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by entities.
(With Inputs From PTI)
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