The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.40 lakh (Rupees Sixty One Lakh Forty Thousand only) on The Nainital Bank Limited for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’ and ‘Customer Service in Banks’.
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| RBI Imposes Rs 61.4 lakh Penalty on Nainital Bank |
RBI Imposes ₹61.4 lakh Penalty on Nainital Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹61.40 lakh on Nainital Bank for non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’ and ‘Customer Service in Banks’.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 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. 6.70 lakh on Ujjivan Small Finance Bank.
RBI Imposes Penalty on Nainital 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, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- Nainital Bank did not benchmark certain floating rate loans extended to MSMEs to an external benchmark rate; and
- Nainital Bank levied penal charges for non-maintenance of minimum balance in savings bank accounts at flat rates instead of the charges being directly proportionate to the extent of shortfall.
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.
Nainital Bank
Nainital Bank was founded by Govind Ballabh Pant in 1922. In 1992, the government-owned Bank of Baroda (BOB) acquired a 98.6% stake in the bank and made it its subsidiary.
The Nainital Bank Limited (NTB) is a scheduled commercial bank. At present, Nainital Bank has 170 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan.
NTB also provide online banking facilities, apart from Personal Banking, Business Banking, Rural and Agricultural Banking.
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 Nainital Bank for upcoming exams
- Formation: 1922
- Headquarters: Nainital, Uttarakhand
- MD & CEO: Nikhil Mohan
- Chief Financial Officer: Mahesh Kumar Goyal
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