RBI imposes monetary penalty of Rs 32 lakh on Indian Bank and Rs 82 lakh on Bengaluru-based Jupiter Capital

RBI imposes monetary penalty of Rs 32 lakh on Indian Bank and Rs 82 lakh on Bengaluru-based Jupiter Capital

• The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 32 lakh on Indian Bank for breach of directions on classification and reporting of frauds.
• The decision was based on the Statutory Inspection for Supervisory Evaluation (ISE) of the bank conducted by RBI with reference to its financial position as on March 31, 2019. The Risk Assessment Report, Inspection Report and all related correspondence revealed that Indian Bank was in violation of certain provisions of RBI (Fraud classification and reporting by commercial banks and select FIs) Directions, 2016.
• The bank failed to comply with the above-mentioned directions, and even furnished flash report to RBI in certain instances with delay.
• Apart from this, RBI has also imposed a penalty of Rs 82 lakh on Jupiter Capital Private Ltd, a non-bank lender based in Bengaluru.
• The penalty has been levied for breach of norms on submission of credit information to Central Repository of Information on Large Credits, and submission of credit information data to Credit Information Companies.

Points to Remember:

1. Indian Bank headquarter: Chennai
2. MD & CEO – Shri Shanti Lal Jain
3. Jupiter Capital Private Ltd headquarter – Bengaluru