Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.72 crore on the Federal Bank for non-adherence with the provisions of ‘Reserve Bank of India (Financial Services provided by Banks) Directions, 2016’ to the extent, the Bank did not ensure that no incentive (cash or non-cash) was paid to its staff engaged in insurance broking/corporate agency services by the insurance company.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.