The Reserve Bank of India (RBI) on November 3 fined Punjab National Bank (PNB), Federal Bank, Kosamattam Finance, and Mercedes-Benz Financial Services India for violating rules.
PNB was fined Rs 72 lakh for multiple violations, including charging SMS fees on certain accounts with invalid mobile numbers in the Core Banking Solution (CBS), not adhering to pre-disclosed interest rates on several term deposit accounts, and failing to specify the interest reset date in MCLR-linked loans.
Federal Bank was fined Rs 30 lakh for issuing demand drafts worth Rs 50,000 or more without including the purchaser’s name on the drafts.
Kosamattam Finance was fined Rs 13.38 lakh for failing to maintain a Loan-to-Value (LTV) ratio of 75% in certain loan accounts during the 2021-22 fiscal year.
Mercedes-Benz Financial Services India was fined Rs 10 lakh for failing to conduct ongoing due diligence of its customers and to update the Know Your Customer (KYC) information of its high-risk customers as of March 31, 2021.
The RBI issued notices to the companies and the bank, asking them to explain why they should not be penalized for failing to comply with the RBI’s directions.
