The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 31.80 lakh (Rupees Thirty one lakh eighty thousand only) on IDBI Bank Limited for non-compliance with certain directions issued by RBI on lnterest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC).
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| RBI Imposes Rs 31.8 lakh Penalty on IDBI Bank |
RBI Imposes ₹31.8 lakh Penalty on IDBI Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹31.80 lakh on IDBI Bank Limited for non-compliance with certain directions issued by RBI on lnterest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC).
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47 A(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 ₹31.80 lakh on Bank of Maharashtra.
RBI Imposes Penalty on IDBI Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2024) 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 charge against the bank was sustained, warranting imposition of monetary penalty:
- The bank charged interest in excess of the applicable rate of interest in certain KCC accounts.
This action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About 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. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to IDBI Bank for upcoming exams
- Founded: 1 July 1964
- Founder: Government of India (by the IDBI Act, 1964)
- Headquarters: Mumbai, Maharashtra
- Managing Director & CEO: Rakesh Sharma
- Number of employees: 20,078 (September 2024)
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