By Admin 
RBI Slaps Fine On Banks: Reserve Bank of India has imposed monetary penalty on many banks and non-banking financial companies for non-compliance of regulatory directions. the central bank Bank of Maharashtra But Rs 32.50 lakh, DCB Bank But Rs 29.60 lakh more CSB Bank A fine of Rs 63.60 lakh was imposed on him. Other than this Navi Finserv But Rs 3.80 lakh more IIFL Finance A penalty of Rs 5.30 lakh has been imposed.
fine on many banks
According to RBI, Bank of Maharashtra did not provide data related to Self Help Group (SHG) members to credit information companies and did not ensure the identity of the real beneficiary in some accounts. CSB Bank was fined because it entered into agreements with bank representatives for actions that were outside the prescribed scope, as well as not providing clear information to customers before charging certain savings accounts.
In the case of DCB Bank, the central bank found that it did not maintain the prescribed ‘loan-to-value’ (LTV) ratio in some non-agriculture gold loan accounts during the loan tenure. At the same time, IIFL Finance failed to correctly classify some accounts as ‘Non-Performing Asset’ (NPA) during restructuring.
Navi Finserv contacted customers at inappropriate times during recovery of outstanding loans and did not follow the prescribed code of conduct in sending messages. In all these cases, RBI has imposed monetary penalty due to violation of regulatory standards.
Leading Bank Scheme Amendment Proposal
The Reserve Bank of India (RBI) has proposed revised guidelines to make the operational structure of the ‘Lead Bank Scheme’ (LBS) more effective and streamlined. This scheme was started in the year 1969, with the objective of better coordination of development activities at the district level and expansion of banking services in a planned manner.
Under LBS, a lead bank is designated in each district, which monitors financial inclusion, credit distribution in priority sectors and implementation of government schemes. The main objective of this scheme is to increase credit flow in priority sectors like agriculture, MSME, self-employment and weaker sections by establishing coordination between banks, state governments and other development agencies. Besides, its important objective is to strengthen financial inclusion and take banking facilities to the last person.
In the new guidelines proposed by RBI, emphasis has been laid on further clarifying and refining the objectives of the scheme. Apart from this, provisions like streamlining the structure, membership and agenda of various forums, clearly defining the roles and responsibilities of key officials and empowering the State Level Bankers’ Committee (SLBC) and Lead District Manager (LDM) offices are included. These changes are aimed at making LBS more accountable, result oriented and in line with current banking needs, so as to ensure better implementation of development programs at the grassroots level.
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