RBI imposes monetary penalty 59 Lakh on this Bank; Check Name of Bank
The Reserve Bank of India (RBI) has levied a monetary penalty of 59 lakh rupees (Rupees Fifty Nine Lakh only) on KEB Hana Bank (the bank) for non-compliance with RBI’s “Reserve Bank of India (Interest Rate on Deposits) Directions, 2016” by a decision dated May 12, 2022. This penalty was issued in the execution of RBI’s powers under Section 47 A (1) (c) of the Banking Regulation Act, 1949, read with Section 46 (4) I (the Act).
This action is based on regulatory compliance issues and is not meant to be a judgement on the legitimacy of any transaction or agreement between the bank and its clients.
RBI conducted a Statutory Inspection for Supervisory Evaluation of the bank with reference to its financial position as of March 31, 2020, and an examination of the Risk Assessment Report and all related correspondences revealed, among other things, non-compliance with the above-mentioned directions to the extent that I interest rates offered on deposits were not consistent and transparent, (ii) interest rate details were not available in the CIF, and (iii) interest rates were not available in the CIF. A notice was sent to the bank in this regard, asking it to show cause why a penalty should not be levied for non-compliance with the RBI orders as indicated therein.
RBI concluded that the charge of non-compliance with the aforementioned RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions, after considering the bank’s response to the notice and oral submissions made during the personal hearing.
To Read Official Press Release Download PDF Given Below: