The RBI has imposed monetary sanctions on two banks-Indian Bank (₹ 1.60 million rupees) and an Indian bank in the Overseas (₹ 63.60 Lakh) and a non-bank financial company, Mahindra & Mahindra Financial Services LTD (Address 71.30), for not combination.
The monetary sanction in the Indian Bank was imposed for not comparing the interest rate in certain loans and retail loans of floating rate to certain micro, small and medium -sized companies (MIPYME) at an external reference rate. The bank had also obtained collateral security for certain Kisan credit card loans (KCC) up to ₹ 1.6 Lakh and certain loans to micro and small businesses up to ₹ 10 Lakh, in violation of the RBI standards, in accordance with a statement issued by the Central Bank.
In addition, the Bank did not transfer the amounts eligible to the Education and Consciousness Fund of deposits within the prescribed period.
The RBI said that a criminal monetary has been imposed in the Indian bank abroad, since it had oblines collateral for agricultural loans of up to ₹ 1.60 Lakh in certain cases and for loans of up to ₹ 10 Lakh extended to certain and small businesses.
In the case of Mahindra & Mahindra Financial Services Ltd, the Central Bank declared that the fine was imposed since the company failed to unravel the processing rates and other charges in certain loan application forms. Nor did he pay copies or loan agreements or transmitted details of the loan in cards of sanction to certain borrowers.
In addition, the NBFC did not provide a final opportunity for certain borrowers to pay their loans before the sale or auction of vehicles. In addition, he assigned multiple customer identification codes to certain clients instead of assigning a single customer identification code (UCIC) to each individual borrower.
Posted on April 25, 2025