RBI fine on ICICI and yes Bank with this reason

ICICI Bank has been fined Rs 1 crore by the Reserve Bank of India (RBI). It is due to its failure to adhere to regulations concerning ‘Loans and Advances – Statutory and Other Restrictions’. RBI fines on ICICI Bank  During its inspection of ICICI Bank for the financial year 2022 (FY22), the RBI discovered that the bank had provided term loans to specific entities as substitutes for budgetary resources for particular projects. ICICI Bank neglected to conduct a comprehensive due diligence to evaluate the viability and longevity of the projects, ensuring that the income generated would cover the debt servicing obligations adequately. The repayment of loans was made using financial resources without confirming that the funds were designated for projects that could be adequately supervised. RBI fines on yes bank Yes Bank was fined Rs 91 lakh by the RBI. It is due to breaching regulations concerning ‘Customer Service in Banks’ and ‘Unauthorized Operation of Internal/Office Accounts.’An examination of Yes Bank for the fiscal year 2022 uncovered that the bank had imposed penalties on accounts with inadequate or no balances. It had established and operated internal accounts under customers’ names for unauthorized purposes. It includes holding funds and conducting transactions.