Case Brief
RBI, by an order dated August 08, 2024, imposed a monetary penalty of Rs 1,86,80,000 on CSB Bank Ltd. The action followed the Statutory Inspection for Supervisory Evaluation (ISE 2022) and a show-cause process. RBI found sustained charges including payment of commission to certain employees under an NPA recovery incentive scheme, failure to inform IBA about termination of service providers, and payment of commission/fee to certain business correspondents without a variable component. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.87 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty