RBI imposes Rs 2.27 crore monetary penalty on RBL Bank for rule violations

The Reserve Bank of India (RBI) on March 20 imposed a economic penalty of Rs 2.27 crore on RBL Bank for violation of a few rules.

The imperative financial institution stated RBL Bank has now no longer complied with positive provisions of the guidelines issued through RBI on `Internal Ombudsman Scheme, 2018`, `Fair Practices Code for Lenders`, `Credit Card Operations of Banks`, `Managing Risks and Code of Conduct in Outsourcing of Financial Services through banks` and `Recovery Agents engaged through Banks`.

The exam of the imperative financial institution discovered that the financial institution didn't speak the selection of its Internal Ombudsman properly, in positive instances (FY 2020-21) and to make sure that the healing marketers engaged through it as part of its debt series attempt did now no longer motel to intimidation or harassment of any kind (FY 2020-21 and FY 2021-22).

Further, it stated that the financial institution additionally didn't make sure the direct or oblique healing marketers through the financial institution had finished schooling direction for Direct Recovery Agents and acquired a certificates from Indian Institute of Banking & Finance earlier than being onboarded (FY 2018-19 to FY 2021-22), and pre-employment police verification turned into done for healing marketers engaged through it (FY 2018-19 to FY 2021-22).

The financial institution additionally failed to tell debtors the information of the healing agency, on the time of forwarding their instances to the healing agency (FY 2020-21).

The imperative financial institution has issued note to the financial institution advising it to expose motive as to why penalty ought to now no longer be imposed on it for failure to conform with the guidelines issued through RBI, as said therein.

Apart from this, the RBI additionally imposed economic penalty on Lokmangal Co-operative Bank, Jila Sahakari Kendriya Bank Maryadit, Smriti Nagrik Sahakari Bank Maryadit, and Raigad Sahakari financial institution.

It imposed Rs four lakh penalty on Smriti Nagrik Sahakari Bank Maryadit, Rs three lakh on Lokmangal Co-operative Bank, Rs 1 lakh on Raigad Sahakari financial institution, and Rs 50,000 on Jila Sahakari Kendriya Bank Maryadit.