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. In the matter of ignoring the rules and playing with the interests of the customers, the Central Bank has taken action against the country’s three big public sector banks and the leading fintech company. ‘Pine Labs’ But a fine of lakhs of rupees has been imposed. 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 depending on 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 customers’ money

The reason for the action taken against Union Bank of India is quite serious. Investigation found that the bank Unauthorized Electronic Transactions (Fraud Transactions) In cases where customer’s money was not returned within the stipulated 10 working days. Additionally, the bank did not have a 24-hour facility to report fraud. The most surprising thing was that Kisan Credit Card (KCC) “Manual” tampering was found in the account data, raising questions on the transparency of loan disbursement.

Where did the Central Bank and Bank of India go wrong?

Central Bank: fine on this bank KYC (Know Your Customer) The imposition has been made for not updating records timely and opening duplicate Basic Savings Accounts (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. as well as, Fixed Deposit (FD) Even the interest for delay in payment after maturity was not given to the customers, which is a direct violation of the rules.

Reason for action against Pine Labs

‘Pine Labs’, a big player in the digital payments sector, has also been hit by the rules. The company has “Full KYC” Prepaid wallets were issued to the customers as soon as the process was completed. Issuing digital wallets without identity verification increases the risk of money laundering and financial fraud, in view of which RBI took this step.

Is customer 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 banks, not on the deposits of customers. It will not have any negative impact on your money and interest.

Customers will benefit: After this strictness of RBI, now banks will take your complaints seriously, the fraud money will be returned soon and there will be transparency in banking services.