RBI fines Yes Bank over ‘zero account stability’ charges

Date:



MUMBAI: RBI has imposed penalties on ICICI Bank and Yes Bank of Rs 1 crore and Rs 91 lakh, respectively, for violation of norms.
Yes Bank violated RBI norms by imposing charges on financial institution accounts the place the stability had run all the way down to zero. It had additionally opened and operated inner accounts in clients’ names for unauthorised functions equivalent to parking funds and routing transactions.
RBI norms prescribe that clients will be charged for banking companies provided that they’ve a stability of their accounts.If the stability in an account falls to zero, the financial institution is required to droop its companies. The 2014 tips say that banks should make sure that the stability within the financial savings account doesn’t flip unfavourable solely on account of levy of charges for non-maintenance of minimal stability.
The penalty on ICICI Bank is for irregularities in sanction of a venture mortgage. Both banks’ violations had been detected following a statutory inspection of their books throughout RBI’s supervisory analysis for FY22.
RBI discovered that ICICI Bank sanctioned time period loans to entities to switch budgetary sources for sure tasks. The financial institution had authorized the loans with out due diligence on the tasks’ viability and bankability. It additionally allowed compensation/servicing of loans from budgetary sources. The loans had been authorized with out guaranteeing they had been for particular, monitorable tasks.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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