RBI Imposes Rs30 Lakh Penalty on Bank of Baroda; Rs42.48 Lakh on Krazybee Services, Rs39.50 Lakh on North East SFB
Moneylife Digital Team 06 February 2023
The Reserve Bank of India (RBI) has imposed a fine of Rs30 lakh on Bank of Baroda (BoB) for breaching stipulated transaction limits and failing to apply prescribed interest rates on term deposits. Separately, Northeast Small Finance Bank Ltd, Utkal Cooperative Bank Ltd and Krazybee Services Pvt Ltd are also penalised by RBI for violating various rules and regulations. 
RBI's statutory inspection for supervisory evaluation (lSE) and examination of the risk assessment report of Bank of Baroda for FY19-20 revealed non-compliance to directions issued by the central bank. It includes breach of the stipulated transaction limits (aggregate of credits in a financial year and aggregate of all withdrawals and transfer in a month) in small accounts and failure to ensure that the interest rates applied in certain term deposit accounts are strictly as per the schedule of interest rates disclosed in advance. 
RBI then issued a notice to BoB. "After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions," it says.
In another order, RBI imposed a penalty of Rs42.48 lakh on Bengaluru-based non-banking finance company (NBFC) Krazybee Services. "The company failed to ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts, thereby failing to adhere to the directions issued by RBI. There were also persistent or repeated complaints about harassment of customers due to the recovery and collection methods adopted by the company,” the central bank says. 
North East Small Finance Bank Ltd was fined Rs39.50 lakh after an inspection report revealed that the Bank failed to classify borrowal accounts as non-performing assets (NPAs), leading to a significant divergence between the reported and assessed NPAs as of 31 March 2020. It was also found that the Bank failed to make pillar three disclosures for FY19-20 in its annual report and website. 
RBI also imposed a penalty of Rs15 lakh on Bhubaneswar-based The Utkal Cooperative Bank Ltd. RBI says that Utkal Coop Bank breached prudential inter-bank (gross) exposure norms and prudential inter-bank counter-party limit and violated specific directions issued under the supervisory action framework (SAF), of not offering higher interest rates on deposits than those provided by State Bank of India (SBI).
1 month ago
I have suffered Losses due to inaptness of BoB in tax calculation to rectifyerror sent in wild goose chase to CAs at my cost .. Service atrocious... and indifferent only glossy ads in E mail boxes
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