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Bombay: The RBI imposed a collective penalty of Rs 14.5 crore on a consortium of banks that lend to a major non-banking financial group for breaching standards and failing to make proper disclosures.
The 12 banks fined Rs 1 crore each are Bandhan Bank, Bank of MaharashtraCentral Bank, Credit Suisse, Indian bankIndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab & Sind Bank, Bank of South IndiaJammu & Kashmir Bank and Utkarsh Small Finance Bank.
Bank of Baroda was fined Rs 2 crore, while State Bank of India was fined Rs 50 lakh. The RBI did not name the borrower.
The RBI said it was due to non-compliance with certain provisions of the guidelines issued by the central bank on lending to NBFCs. They also failed to follow RBI guidelines in creating a central repository of major joint exhibits.
The RBI previously required banks to submit information on loans above a certain value to a central large credit information repository (CRILC).
Some of these banks had breached Section 19(2) of the RBI Act, which states that no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount greater than 30% of the paid-up portion. capital of this company.
The central bank also cited breach of section 20(1) of the Banking Regulation Act 1949, which prohibits banks from making loans to directors or companies in which their directors have an interest.