Big action by RBI: Heavy fine on Union Bank, Central Bank and Bank of India; Pine Labs also got tested, know what will be the effect on you

The Reserve Bank of India (RBI) has once again launched Hunter to maintain discipline in the banking sector. The Central Bank has imposed a fine of lakhs of rupees on three big public sector banks of the country and the leading fintech company ‘Pine Labs’ for ignoring the rules and playing with the interests of the customers. This strict action of RBI has made it clear that laxity in banking guidelines will not be tolerated at any cost. These giants were punished: See the full list of fines. After investigation, RBI has fixed different amounts considering the seriousness of the violation of rules. The highest penalty has been imposed on Union Bank in this action: Union Bank of India: ₹ 95.40 lakh Central Bank of India: ₹ 63.60 lakh Bank of India: ₹ 58.50 lakh Pine Labs: ₹ 3.10 lakh Union Bank’s negligence: slowness in returning the customers’ money The reason for the action taken on Union Bank of India is quite serious. The investigation found that the bank did not return the customers’ money within the stipulated 10 working days in cases of unauthorized electronic transactions (Fraud Transactions). Additionally, the bank did not have a 24-hour facility to report fraud. The most shocking thing is that “manual” tampering was found in the data of Kisan Credit Card (KCC) accounts, which has raised questions on the transparency of loan distribution. Where did Central Bank and Bank of India go wrong? Central Bank: Penalty has been imposed on this bank for not updating KYC (Know Your Customer) records on time and opening duplicate Basic Savings Account (BSBD) in the name of the same customer. Bank of India: The bank Collected service and processing charges from small farmers and entrepreneurs against the rules. Also, after the maturity of Fixed Deposit (FD), the interest for the delay in payment was also not given to the customers, which is a direct violation of the rules. Reason for action on Pine Labs: ‘Pine Labs’, a big player in the digital payment sector, has also fallen under the influence of rules. The company had issued prepaid wallets to customers without completing the “full KYC” process. Issuing digital wallets without identity verification increases the risk of money laundering and financial fraud, in view of which RBI took this step. Is the customer’s money safe? If your account is in these banks, then you do not need to panic at all. Money is completely safe: This penalty is imposed on the compliance of the banks, not on the deposits of the customers. This will not have any negative impact on your money and interest. Customers will benefit: After this strictness of RBI, banks will now take your complaints seriously, fraud money will be returned quickly and there will be transparency in banking services.