RBI imposes penalities on Dhankaxmi Bank, Punjab & Sind Bank and ESAF Small Finane Bank

Current Context: The Reserve Bank of India (RBI) imposed penalties on Dhanlaxmi Bank, Punjab & Sind Bank, and ESAF Small Finance Bank on January 12, 2024.

• Dhanlaxmi Bank: The RBI has levied a penalty of Rs 1.2 crore on Dhanlaxmi Bank for three violations. The bank did not offer higher interest rates to some senior citizens against the regular norm, did not obtain PAN for some deposits, and extended gold loans for non-agriculture purposes exceeding 75% of the value of gold pledged against rules.
• Punjab & Sind Bank: The central bank has imposed a penalty of Rs 1 crore on Punjab & Sind Bank for violating lending rules.
• ESAF Small Finance Bank: ESAF Small Finance Bank will have to pay a penalty of Rs 30 lakh for deficiencies in customer service.

Question:

Q.1 Which bank was penalized by the RBI for not offering higher interest rates to some senior citizens?
a. Punjab & Sind Bank
b. ESAF Small Finance Bank
c. Dhanlaxmi Bank
d. None of the above