RBI Action : The Reserve Bank of India (RBI) controls all banking and non-banking financial entities in India. It frequently imposes stringent requirements. The RBI has now taken action against the India Post Payments Bank and the Equitas Small Finance Bank.
India Post Payment Bank (IPPB) was fined Rs 26.70 lakh by the central bank. Equitas Small Finance Bank has been fined Rs 65 lakh for violating the rules. In addition, the RBI has imposed a Rs 3.10 lakh punishment on Aptus Finance India Private Limited.
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The company did not follow these guidelines
Aptus Finance India Private Limited did not obtain formal clearance from the RBI prior to making management changes. As a result, 30% of its directors, with the exception of independent directors, were replaced. Correspondence relating to director appointment information indicated errors in accordance with the instructions, prompting the central bank to issue a show cause notice. Following an investigation, a fine was imposed.
Why did the RBI take such tough action in RBI Action against banks?
IPPB upgraded certain savings bank accounts without the consumers’ approval. Following the account upgrade, annual costs were applied. The RBI decided to issue a fine when the charges were confirmed. Equitas Small Finance Bank levied foreclosure costs on some floating-rate term loans made by private borrowers for non-business purposes. Some loans totalling Rs 1.6 lakh were secured with collateral. The Reserve Bank of India has taken this step due to a lack of compliance with the rules. It will have no effect on the transactions or agreements between consumers.
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