RBI fines Federal Bank Rs 5.7 cr for flouting insurance broking norms

Banking regulator imposes fine of Rs 70 lakh on Bank of India for non-compliance with KYC norms

The Reserve Bank of India has imposed a penalty of Rs 5.72 crore on Federal Bank for non-compliance with norms related to insurance broking/corporate agency services.

“…the bank failed to ensure that no incentive (cash or non-cash) was paid to its staff engaged in insurance broking/corporate agency services by the insurance company,” the central bank said through a release on Friday.

The regulatory action taken by the RBI is not intended to pronounce upon the validity of any transactions or agreements entered into by Federal Bank and its customers, the release read.

The RBI separately imposed a fine of Rs 70 lakh on