RBI Imposed Penalty on Banks: The Reserve Bank of India (RBI) has informed that it has imposed a fine of Rs 30 lakh on MUFG Bank Limited (MUFG) for non-compliance with the instructions issued regarding statutory and other restrictions in the matter of loans. MUFG Bank was formerly known as The Bank of Tokyo-Mitsubishi UFJ Ltd.
What are the complaints against MUFG Bank
RBI said that MUFG Bank gave loans to such companies whose board of directors included persons who were directors on the boards of other banks. This is a clear violation of the guidelines and rules of RBI. The main reason for imposition of penalty is due, inter alia, regarding non-compliance of directions issued by the bank on sanction of loans and advances to companies during the supervisory evaluation with reference to the financial position as on March 11, 2019. Information found in RBI informed that the central bank had also issued a notice to MUFG Bank in this regard. In this regard, the bank did not give the details of the appropriate action, due to which the penalty has been imposed on the bank.
Why MUFG Bank was fined
In return for the notice issued to MUFG Bank, the reply of the bank and after oral testimony, RBI came to the conclusion that monetary penalty should be imposed on this well-known bank of Japan. This bank proved to be unsuccessful in following some of the guidelines given by RBI, due to which it has to face the penalty proceedings.
Monetary penalty on two more banks, both of Maharashtra
Apart from this, the Reserve Bank of India has also imposed penalties on two co-operative banks for deficiencies in regulatory compliance. One of these banks is from Ratnagiri in Maharashtra and the other is a cooperative bank in Mumbai. In another statement, RBI said that Chiplun Urban Co-operative Bank Ltd., Ratnagiri has been fined Rs 2 lakh for non-compliance of the loan limit in certain cases. Apart from this, a fine of Rs 1 lakh has also been imposed on Dattatreya Maharaj Kalambay Jaoli Sahakari Bank Ltd., Mumbai in a similar case.
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