New Delhi, Feb. 14 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 61.40 lakh on The Nainital Bank Limited for non-compliance with certain directions issued by RBI on 'Interest Rate on Advances' and 'Customer Service in Banks'.
According to RBI, the bank did not benchmark certain floating rate loans extended to MSMEs to an external benchmark rate; and also the bank levied penal charges for non-maintenance of minimum balance in savings bank accounts at flat rates instead of the charges being directly proportionate to the extent of shortfall.
The statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
Based on supervi...