RBI imposes penalty on Canara Bank: RBI has imposed a penalty of Rs 2.92 crore on Canara Bank

Restrictions on Canara Bank

In case of banks violating the rules issued by the Reserve Bank of India (RBI), they may face legal action. RBI can impose penalty on such banks. A news is coming out regarding this matter.

The Reserve Bank of India (RBI) on Friday announced that it has imposed a penalty of Rs 2.92 crore for violations. RBI observed on March 31, 2021.

Why this penalty has been imposed on Canara Bank?

RBI has informed that many savings and deposit accounts have been opened by banks in the name of ineligible institutions. Also, dummy mobile numbers were registered in several credit card accounts. The bank has violated several norms, due to which the penalty has been imposed. In a related notice to the bank, the RBI pointed out non-compliance of several directions and questioned why the bank should not be penalized for its non-compliance.