Key Points
- Bank of Baroda was fined ₹63.60 lakh for violating the Fair Practices Code for Lenders and KYC guidelines.
- The bank was found to have charged excess interest in certain loan accounts and delayed uploading customer records to the Central KYC Records Registry (CKYCR).
- GIC Housing Finance Ltd. was penalised ₹3.10 lakh for non-compliance with RBI's KYC directions, including deficiencies in periodic risk assessment of customer accounts.
- RBI stated that the penalties are based on deficiencies in regulatory compliance and do not impact customers or the validity of any banking transactions or agreements.
Question:
Q1.Bank of Baroda was penalised by the RBI mainly for violating which regulations?a) Basel III Norms and FEMA Guidelines
b) Fair Practices Code for Lenders and KYC Guidelines
c) Priority Sector Lending Guidelines only
d) Digital Lending Guidelines only
Answer: b) Bank of Baroda was fined for violating the Fair Practices Code for Lenders and KYC norms.
