Mumbai, February 13 The Reserve Bank of India (RBI) imposed monetary penalties on Bank of Maharashtra, DCB Bank, and CSB Bank on Friday for non-compliance with directions.
The central bank imposed a fine of Rs 32.50 lakh on Bank of Maharashtra, Rs 29.60 lakh on DCB Bank, and Rs 63.60 lakh on CSB Bank, as stated in an RBI release.
The RBI also penalized Navi Finserv with Rs 3.80 lakh, and imposed a fine of Rs 5.30 lakh on IIFL Finance, the release added.
The monetary penalty on Bank of Maharashtra was imposed because the lender did not report data at the Self Help Group member level to credit information companies and did not identify beneficial owners in certain accounts.
CSB Bank was penalized as it entered into an arrangement with business correspondents to undertake activities outside the scope of activities that they could undertake, and for levying charges in certain savings bank accounts without ensuring that customers were informed about these charges upfront, as stated by the RBI.
In the case of DCB Bank, the RBI found that it failed to maintain the prescribed loan-to-value (LTV) ratio in certain non-agricultural gold loan accounts during the tenure of such loans, which resulted in the penalty.
IIFL Finance, a non-bank lender, failed to classify certain accounts as 'non-performing assets' during restructuring, and Navi Finserv contacted customers at odd hours to recover overdue loans and did not follow the proper protocol when sending messages to customers, which resulted in it being penalized by the central bank.