RBI Imposes Penalties on Bank of Maharashtra, Hinduja Leyland Finance, and Poonawalla Fincorp
The Reserve Bank of India (RBI) has levied penalties on several financial institutions for regulatory breaches. On August 8, 2024, the RBI announced a fine of ₹1.27 crore on the Bank of Maharashtra for failing to adhere to its directives on various fronts, including the ‘Loan System for Delivery of Bank Credit,’ ‘Cyber Security Framework in Banks,’ and ‘Know Your Customer’ (KYC) norms.
The penalty follows an examination of the bank’s compliance with RBI guidelines. Despite the bank’s responses to notices, oral submissions during personal hearings, and additional documents provided, the RBI found that the charges against the Bank of Maharashtra were substantiated, leading to the imposition of the monetary penalty.
In addition to the Bank of Maharashtra, the RBI has also sanctioned penalties against Hinduja Leyland Finance and Poonawalla Fincorp. Details of the fines for these institutions have not been disclosed, but the penalties highlight the RBI’s ongoing efforts to enforce regulatory compliance within the financial sector.
The RBI’s actions underscore its commitment to upholding regulatory standards and ensuring that financial institutions adhere to established protocols, particularly in critical areas such as customer identification and cybersecurity.
The affected institutions now face the challenge of addressing the RBI’s concerns and reinforcing their compliance measures to avoid further regulatory issues. The central bank’s regulatory oversight aims to enhance the integrity and reliability of the financial sector in India.