Sucheta Dalal :RBI Punishes Banks but Gently
Sucheta Dalal

Click here for FREE MEMBERSHIP to Moneylife Foundation which entitles you to:
• Access to information on investment issues

• Invitations to attend free workshops on financial literacy
• Grievance redressal

 

MoneyLife
You are here: Home » Current Articles » RBI Punishes Banks, but Gently
                       Previous           Next

RBI Punishes Banks, but Gently  

July 24, 2013

RBI has imposed a combined penalty of nearly Rs50 crore on Indian banks. Strangely, the apex banking regulator has let foreign banks get away and issued just a letter of caution


Sucheta Dalal

On 12th July, RBI imposed a combined penalty of nearly Rs50 crore on 22 banks for violation of KYC (know your customer) norms and mis-selling of gold, insurance and mutual fund products. But, it has stood firm on its original claim that, despite Cobrapost’s sting operation showing scores of bank managers enthusiastically suggesting ways to break and bend the rules, there were no violations. Isn’t it curious that RBI ignores the fact that its own inspectors discovered the precise violations that bank officials described as ways of laundering black money?


To read more on this click here...


-- Sucheta Dalal