CSB Bank and Muthoot Housing attract RBI monetary penalty

MUMBAI: The Reserve Bank of India (RBI) has imposed monetary penalty on two Kerala-based financial institutions – CSB Bank and Muthoot Housing Finance, and Union Bank of India (UBI).

While the Thrissur-based CSB Bank was fined to the extent of Rs1.87 crore, the penalty attracted by Muthoot Housing Finance was only Rs5 lakh.

UBI penalty

The RBI by an order dated August 06, 2024, imposed a monetary penalty of Rs1.4 crore on Union Bank of India (UBI).

“This was for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures Across Banks’, and ‘Know Your Customer (KYC)’.

CSB Bank

The RBI imposed the monetary penalty on CSB Bank for contravention of certain section of the BR Act, and non-compliance with certain directions in Outsourcing of Financial Services by banks.

Muthoot Housing Finance

The penalty on Muthoot Housing Finance was for non-compliance with certain provisions of the NBFC- Housing Finance Company, in relation to governance.