Mumbai Court Sends Former RCFL CEO Devang Mody To CBI Custody In ₹7,623 Crore Bank Fraud Probe

A Special CBI Court in Mumbai on Tuesday remanded former Reliance Commercial Finance Ltd (RCFL) Chief Executive Officer and Director Devang Pravin Mody to CBI custody till June 25, 2026. The remand was granted in connection with the CBI's probe into an alleged ₹7,623 crore bank fraud involving Reliance ADA Group companies RCFL and Reliance Home Finance Ltd (RHFL). The case pertains to alleged irregularities in loans extended by a consortium of 31 banks and financial institutions to the group...

RBI Ombudsman Cannot Reject Complaints Through Unsigned Emails, Must Give Reasons: Kerala High Court

The Kerala High Court has held that the RBI Ombudsman cannot dismiss complaints through unsigned, system-generated communications that contain no reasons, observing that orders affecting the rights of parties must disclose the basis for the conclusions reached. Justice Bechu Kurian Thomas delivered the judgment while setting aside a communication issued by the RBI Ombudsman rejecting a complaint filed by Unique Enterprises and its partner against Kotak Mahindra Bank. “In the absence of...

Officers Skipping Mandatory Learning Expose Bank To Risks: Calcutta HC Upholds SBI Reimbursement Policy.

The Calcutta High Court has upheld the State Bank of India's decision to withhold certain reimbursements from officers who fail to complete mandatory learning programmes. The Court observed that employees who do not update themselves expose the bank to risks relating to money laundering and cyber fraud. Justice Raja Basu Chowdhury, in a judgment delivered on June 18, dismissed a petition filed by the All India State Bank Officers Federation challenging SBI circulars issued in 2021 that linked...

Banks Must Restrict Account Freeze To Amount Specified In Freezing Direction: Karnataka High Court

Banks cannot freeze an entire account when investigating agencies have directed freezing only up to a specified amount, the Karnataka High Court has held. The court observed that any restriction on the operation of a bank account must remain proportionate to the purpose sought to be achieved. Justice Suraj Govindaraj delivered the ruling while allowing a petition filed by a customer of IndusInd Bank. The account holder challenged the freezing of his account following communications from...

RBI Penalises Repco Home Finance, IIFL Samasta And True Credits For Regulatory Lapses

The Reserve Bank of India (RBI) on Friday imposed monetary penalties on Repco Home Finance Ltd, IIFL Samasta Finance Ltd and True Credits Pvt. Ltd for separate instances of non-compliance with regulatory directions. The highest penalty, amounting to Rs. 3.90 lakh, was imposed on IIFL Samasta Finance Ltd for violations of RBI directions on Know Your Customer (KYC) norms and fraud risk management for NBFCs. The RBI found that the company had failed to put in place a robust system for...

Punjab & Haryana HC Quashes Canara Bank's Fraud Classification For Failure To Furnish Full Forensic Audit Report

The Punjab and Haryana High Court has set aside Canara Bank's order declaring the borrowers' account as fraudulent. The Court found that the bank had not supplied the complete forensic audit report on which the fraud classification was based. It also found that the bank had not informed the borrowers that any portion of the report was being withheld due to third-party rights. A division bench of Justice Alka Sarin and Justice Ramesh Chander Dimri observed that where a bank seeks to withhold...

PIL In Supreme Court Seeks Court-Monitored Probe Into JKM Infra's ₹1,537 Crore Debt Settlement Through ARCs

A public interest litigation has been filed in the Supreme Court seeking a court-monitored investigation into allegations of large-scale diversion of bank funds by Noida-based JKM Infra Projects Ltd. The plea also seeks a probe into the assignment and settlement of the company's debt through Asset Reconstruction Companies (ARCs). The petition, filed by three advocates, seeks directions to the Reserve Bank of India (RBI), Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO),...

Depositors Can Approach Consumer Fora Despite Co-operative Societies Act Remedies: Kerala High Court

The Kerala High Court on 2 June held that remedies under the Kerala Co-operative Societies Act, 1969 do not bar depositors of co-operative banks from approaching consumer fora under the Consumer Protection Act for redressal of their grievances. A Division Bench comprising Justices Dr. A.K. Jayasankaran Nambiar and Preeta A.K. dismissed an appeal filed by Puthur Service Co-operative Bank against orders of the consumer fora directing repayment of matured fixed deposits. The judges held: “...even...

RBI Imposes ₹41.80 Lakh Penalty On Canara Bank For KYC, Inoperative Accounts Norm Violations

The Reserve Bank of India on Friday imposed a ₹41.80 lakh penalty on Canara Bank for violating certain Know Your Customer (KYC) and unclaimed deposits norms. The action stems from a Statutory Inspection for Supervisory Evaluation conducted on March 31, 2025. According to the RBI, Canara Bank failed to upload the KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline. The regulator also found that the bank had marked some accounts as inoperative...

RBI Imposes ₹3.1 Lakh Penalty on CreditAccess Grameen Over KYC Violations

The Reserve Bank of India (RBI) on Friday imposed a penalty of ₹3.10 lakh on CreditAccess Grameen Limited for violating certain Know Your Customer (KYC) norms. RBI found that the company had not put in place a robust software system that could automatically flag transactions that were inconsistent with customers' risk profiles and updated records, a key requirement for identifying and reporting suspicious transactions. The regulator clarified that the penalty relates only to shortcomings in...

RBI Mandates 3-Year Cooling-Off For Co-Operative Bank Directors After 10-Year Continuous Tenure

The Reserve Bank of India has introduced a mandatory three-year cooling-off period for directors of urban and rural co-operative banks after they complete 10 years of continuous tenure on the board of the same bank, seeking to prevent directors from briefly stepping down and returning to circumvent tenure limits. The amendment directions, issued on May 25 by Chief General Manager Scenta Joy, came into force with immediate effect. “In a few cases, directors have been found to be resorting to...

RBI Penalises City Union Bank, Two NBFCs Over Lending, Governance and KYC Compliance Lapses

The Reserve Bank of India (RBI) has imposed monetary penalties on City Union Bank Limited, Newa Investments Private Limited, and Mintifi Finserve Private Limited for separate compliance failures identified during supervisory inspections. City Union Bank was fined ₹10.10 lakh for non-compliance with RBI directions on priority sector loan accounts and reporting obligations relating to Self Help Group (SHG) members. RBI found that the bank had levied loan-related charges on certain agriculture...