RBI Imposes Penalty On RBL And Several Other Cooperative Banks For Non Compliance

Penalty On Banks By RBI: There are often complaints about Loan Recovery Agents that they misbehave with the customers. Due to this, the Reserve Bank has tightened the parameters regarding loan recovery agents (RBI Loan Recovery Agents Guidelines) and all banks have been asked to comply strictly. In this matter, not following the guidelines of the Reserve Bank properly, the banks are overburdened and the central bank imposes penalty in such cases. One such recent case has come to the fore, in which the Reserve Bank has imposed a fine of crores on a bank.

Negligences found in the investigation

The latest case is of RBL Bank, in which RBI has imposed a fine of Rs 2.27 crore. The Reserve Bank said on Monday that RBL Bank Limited has been fined for non-compliance of certain guidelines related to loan recovery agents. The Reserve Bank had received complaints against RBL Bank in this regard. After examining the complaints, the Central Bank found that the recovery agents of RBL Bank committed lapses in regulatory compliance during FY 2018-19 to FY 2021-22.

The bank violated these provisions

According to RBI, RBL Bank failed to ensure that its loan recovery agents did not indulge in harassment of customers during the relevant period. Apart from this, RBL Bank also failed to conduct police verification of the concerned recovery agents before assigning them work. The Reserve Bank said that it has issued notices due to non-compliance of directions such as the Internal Ombudsman Scheme 2018, Fair Practices Code for Lenders, Credit Card Operation of Banks, Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks and Recovery Agents Engaged by Banks. It has been decided to impose penalty on RBL Bank.

RBI’s gaze on these co-operative banks as well

Apart from RBL Bank, the Central Bank has also taken action against some cooperative banks. These banks include Lokmangal Co-operative Bank, Solapur of Solapur, District Sahakari Kendriya Bank Maryadit of Raisen, Smriti Nagrik Sahakari Bank Maryadit of Mandsaur. , Mandsaur), Raigad Sahakari Bank, Mumbai, Noble Co-operative Bank, Noida and Imperial Urban Co-operative Bank, Jalandhar is included. These co-operative banks have been fined for not following various banking provisions properly.