Cracking the whip: Banks may face bigger fines for non-compliance | Banking

The government will consider allowing higher fines on banks for not complying with regulatory guidelines amid concerns that the current penalty amounts may not act as effective deterrents for large organisations or repeat offenders. The Centre is open to reviewing the mechanism followed by the regulator by amending the Banking Regulation (BR) Act, 1949, and the Reserve Bank of India Act, 1934, said a senior government official.  

“The current penalty amounts are low.

We will discuss this matter with the regulator (RBI). We are open to the possibility of amending the relevant provisions,” the official said requesting anonymity.  

Under the