The Reserve Bank of India (RBI) has imposed a monetary penalty on RBL Bank Limited for non-compliance with certain regulatory requirements. Specifically, the bank was penalized for non-adequate provisioning of duality of control, management deficiencies, and failure to keep a proper audit trail for transactions. The RBI deemed these deficiencies to be a significant risk to the soundness and stability of the bank.
As a result, the RBI has imposed a penalty of INR 1.38 Crore (approximately USD 190,000) on RBL Bank Limited for the period from November 2019 to November 2020. This monetary penalty is a means to ensure that banks maintain stringent compliance with regulatory guidelines, thereby protecting the stability and integrity of the banking system.
The RBI takes similar actions against banks for repeated non-compliance to stress the importance of compliance and to ensure that banking customers have confidence in the functioning of the banking system.
Source: https://www.goodreturns.in/news/rbi-imposes-monetary-penalty-on-rbl-bank-limited-1390029.html