The Reserve Bank of India has imposed a 1 crore rupees penalty on ICICI Bank for failing to comply with directives related to 'Loans and Advances – Statutory and Other Restrictions'.
An inspection of ICICI Bank for the financial year 2022 revealed that the bank had issued term loans to certain entities as replacements for budgetary resources for specific projects without proper due diligence on the feasibility and sustainability of these projects, necessary to ensure adequate revenue for debt servicing.
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In a related action, the RBI fined Yes Bank 91 lakh rupees on May 17 for violating regulations on 'Customer Service in Banks' and 'Un-Authorised Operation of Internal/Office Accounts'.
During the inspection of Yes Bank for the fiscal year 2022, it was found that the bank had imposed penalties on accounts with insufficient or zero balances.
Additionally, Yes Bank had opened and utilized internal accounts under customers' names for unauthorized activities, including fund parking and transaction processing.