The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹27.30 lakh (Rupees Twenty Seven Lakh Thirty Thousand only) on Federal Bank Limited for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’.
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| RBI Imposes Rs 27.3 lakh Penalty on Federal Bank |
RBI Imposes Rs27.3 lakh Penalty on Federal Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹27.30 lakh on Federal Bank Limited for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’.
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 8.30 lakh on Karur Vysya Bank.
RBI Imposes Penalty on Federal Bank: Background
The statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had opened certain savings deposit accounts in the name of ineligible entities.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M.D. Patra
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
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Static Current Affairs related to Federal Bank for upcoming exams
- Formation: 23 April 1931 (as Travancore Federal Bank) at Nedumpuram, Thiruvalla & 2 December 1949 (as Federal Bank)
- Founder: K. P. Hormis
- Headquarters: Aluva, Kochi, Kerala
- Number of branches: 1,518 branches (2024)
- Number of employees: 15,200+
- MD & CEO: KVS Manian
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