Reserve Bank of India imposes monetary penalty on Federal Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹50 million on Federal Bank Limited by order dated September 25, 2018. The penalty was levied for violation of Section 19(2) of the Banking Regulation Act, 1949 and for non-compliance with RBI directions on CRILC reporting, reporting for RBS assessment, payment of compensation for delay in resolving ATM-related customer complaints, and KYC/AML norms. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.