reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 5.72 crore for deficiencies in regulatory compliance. A penalty of Rs 70 lakh has also been imposed for non-compliance of certain provisions of Know Your Customer (KYC) norms and instructions issued on ‘compliance function in banks’. reserve Bank of IndiaIt said in a statement.

Regarding Federal Bank, RBI said the bank failed to ensure that no incentive (cash or non-cash) was paid by the insurance company to its employees engaged in insurance broking/corporate agency services, a separate According to the statement.

The RBI had conducted the statutory oversight for Supervisory Assessment (LSE) with reference to the financial position of the bank as on March 31, 2020.

In another statement, RBI said a penalty of Rs 7.6 lakh has been imposed. Dhani Loans And Services Limited, Gurugram For non-compliance of KYC norms.

RBI said the penalty is based on deficiencies in regulatory compliance and is not intended to accentuate the validity of any transaction or agreement entered into by both the banks and moneylenders on loans and services with their customers. PTI nkd ram