The Reserve Bank of India (RBI) has imposed penalties totaling ₹68.1 lakh on Nainital Bank Ltd and Ujjivan Small Finance Bank for failing to comply with regulatory norms. Nainital Bank was fined ₹61.40 lakh for not adhering to ‘Interest Rate on Advances’ and ‘Customer Service in Banks’ guidelines. Meanwhile, Ujjivan Small Finance Bank faced a penalty of ₹6.70 lahks for not following directives on ‘Loans and Advances – Statutory and Other Restrictions’.
In addition to these penalties, Shriram Finance, a non-banking financial entity, was fined ₹5.80 lakh for violating Know Your Customer (KYC) guidelines and failing to comply with requirements related to ‘Data Format for Furnishing of Credit Information to Credit Information Companies’.
The RBI clarified that these penalties are solely due to regulatory compliance deficiencies and do not affect the validity of transactions or agreements made by these institutions with their customers. The central bank also indicated that further action could be taken if deemed necessary.
