RBL Bank fined Rs 2.27 crore by RBI

21 Mar 2023 , 08:24 AM

The Reserve Bank of India (RBI) announced on Monday that RBL Bank Ltd. has been fined Rs 2.27 crore ($274,915) for failing to follow some instructions regarding loan collection agencies.

After reviewing complaints made against the recovery agents for the Mumbai-based lender over the fiscal years 2018–19 to 2021–2022, the RBI found ‘deficiencies in regulatory compliance,’ according to a statement from the central bank.

According to the RBI, RBL didn’t make sure the loan recovery agents it hired at those times didn’t use intimidation or harassment, and it didn’t make sure police checks were done on the agents prior to hiring them.

Last year, the RBI issued a circular instructing the financial institutions it controlled to ‘strictly ensure that they or their representatives did not resort to intimidation or harassment of any type’, and that any infringement would be ‘viewed sternly’.

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