RBI Enforces Penalties on Multiple Banks for Regulatory Non-compliance

The Reserve Bank of India (RBI) announced penalties against several banks for failing to comply with regulatory directions. Ebix Payment Services was fined Rs 80,000 for not conducting risk categorisation of customers. Hardoi Jilla Sahkari Bank faced a fine of Rs 1 lakh due to inadequate periodic risk assessments.

Another Rs 80,000 penalty was levied on Dr Babasaheb Ambedkar Nagari Sahakari Bank for violating the Supervisory Action Framework regulations by exceeding the regulatory ceiling on advances and offering higher interest rates than those offered by the State Bank of India.

In a separate announcement, the RBI sanctioned the amalgamation of The Mekhar Urban Co-op Bank with Nagpur Nagarik Sahakari Bank. This merger will take effect from April 24, with all branches operating under the Nagpur Nagarik Sahakari Bank banner.