RBI imposed fine on Indian Bank and Mahindra & Mahindra Financial Services

New Delhi| The Reserve Bank of India (RBI) has fined Indian Bank and Mahindra & Mahindra Financial Services for regulatory compliance deficiencies. The central bank gave this information.

Indian Bank has been fined Rs 1.61 crore for violating certain provisions of the Banking Regulation Act and not following directions involving ‘interest rate on advances’, ‘Kisan Credit Card (KCC) scheme’ and ‘loans to micro, small and medium enterprises (MSME) sector’, according to RBI

Additionally, RBI fined Mahindra & Mahindra Financial Services Limited Rs 71.30 lakh for non-compliance with certain provisions of the ‘Non-Banking Financial Company-Systemically Important Non-Deposit Accepting Company and Deposit Accepting Company (Reserve Bank) Instructions, 2016’ and ‘Know Your Customer’ instructions.

In both cases, the central bank said deficiencies in penal regulatory compliance had been found. This action is not intended to decide on the validity of any transaction or agreement entered into on behalf of these entities with their customers.

RBI canceled the license of Jalandhar-based Imperial Urban Co-op Bank
The Reserve Bank of India on Friday said it has canceled the license of Jalandhar-based Imperial Urban Co-operative Bank as the bank does not have adequate capital and earning potential. The Registrar of Co-operative Societies of the Punjab Government has also been requested to issue an order to close the bank and appoint a liquidator for the bank.

Upon liquidation, each depositor will be entitled to receive deposit insurance claim amount on his deposits up to Rs.5 lakh from Deposit Insurance and Loan Guarantee Corporation (DICGC). According to data presented by the bank, RBI stated that 97.79 per cent of depositors are entitled to receive the full amount of their deposits from DICGC. As of January 31, 2025 DICGC has already paid Rs 5.41 crore out of the total insured deposits.