Case Brief
By an order dated November 08, 2024, RBI imposed a monetary penalty on South Indian Bank Limited after an inspection and subsequent show-cause process found non-compliance with RBI directions on 'Interest Rate on Deposits' and 'Customer Service in Banks'. The bank was found to have levied penal charges for non-maintenance of minimum balance/average minimum balance without notifying certain customers through SMS/email/letter, and to have marked lien against certain NRE savings deposit accounts. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act.
Action Snapshot
- Primary Impact
- Fine: Rs 59.2 L
- Entity Type
- Bank
- Action Type
- Monetary penalty