RBI fines Federal Bank, PNB, and two more companies

 RBI fines Federal Bank, PNB, and two more companies

Mercedes-Benz Financial Services India Private Ltd (which was formerly Daimler Financial Services India Private Ltd) has also been fined Rs 10 lakh for failing to comply with certain requirements of the Know Your Customer (KYC) Direction, 2016.

Mercedes-Benz has also been hit with a penalty of Rs 10 lakh.

The Reserve Bank said on Friday that it has fined the state-owned Punjab National Bank Rs 72 lakh and the private sector Federal Bank Rs 30 lakh for failing to comply with certain regulatory requirements.

Mercedes-Benz Financial Services the nation Private Ltd (formerly Daimler Financial Services India Private Ltd) has also been fined Rs 10 lakh for failing to comply with certain requirements of the Know Your Customer (KYC) Direction, 2016.

The Reserve Bank of India (RBI) announced in a statement that Punjab National Bank has been penalized for breaking several rules on "interest rate on advances" and "customer service in banks." The central bank said in a separate statement that Federal Bank has been fined for breaking several KYC regulations.

Additionally, according to the RBI, Kosamattam Finance Ltd. in Kottayam has been fined Rs. 13.38 lakh for breaking some of the guidelines set forth in the 'Non-Banking Financial Company - Systemically Essential Non-Deposit taking Company as well as Deposit taking Company (Reserve Bank) Directions, 2016'.

The central bank said that fines are always based on noncompliance with regulations and aren't meant to judge the legitimacy of any deal or arrangement that the companies have with their clients.