The Reserve Bank of India (RBI) imposed penalties worth Rs 40.39 crore on banks, non-banking financial companies (NBFCs) and other entities in the financial year 2022-23, minister of state for finance Bhagwat Karad told Parliament on December 18.
The RBI imposed 176 penalties worth Rs 14.04 crore on cooperative banks during the year, the minister said in a written reply to the Lok Sabha.
While private sector banks were fined Rs 12.17 crore, public sector banks (PSBs) Rs 3.65 crore, foreign banks Rs 4.65 crore, small finance banks Rs 0.97 crore, regional rural banks Rs 0.42 crore, housing finance companies (HFCs) Rs 0.10 crore and NBFCs had to pay Rs 4.39 crore in penalties.
“RBI has informed that it is mandated to take enforcement action as per Enforcement Policy and Framework approved by the Board for Financial Supervision of RBI, in the form of imposition of monetary penalty on REs for contraventions of different statues and directions issued thereunder,” Karad said.
The RBI issued guidelines on fair practices code to be adopted by banks, NBFCs, and HFCs and these covered various aspects of lending, the minister told the House.