Reserve Bank imposes penalty on Federal Bank for non-compliance of certain directions

Reserve Bank has imposed a penalty of five crore rupees on Federal Bank for non-compliance of certain RBI directions among other deficiencies.
In a press release issued yesterday, RBI said Federal Bank had failed to report large borrower exposure for assessment under risk-based supervision.
The bank had also failed to pay compensation to customers for a delay in the resolution of ATM related complaints. Besides, the bank was also found lacking in following know your customer and anti-money laundering norms.
Clarifying that it does wish to invalidate any transaction or agreement that the bank has entered with its customers, RBI has said that the action is based simply on the deficiencies in regulatory compliance.

Published On : 04 Oct 2018