RBI Is Considering Framework Revamp By Increasing Penal Amounts
The Reserve Bank of India (RBI) is considering a thorough review of its penalty framework, Business Standard reported, citing reliable regulatory sources.
Possible changes might involve increasing penal amounts and exploring the connection to the size of regulated entities (REs), particularly for crucial entities and repeated offences. Additionally, the review may assess the possibility of reclaiming payouts from CEOs and key management personnel (KMP).
For state-run banks, the progression of careers for key management personnel (KMP) may be determined by remarks from the RBI’s senior supervisory manager. There’s speculation that “additional capital charge on REs cannot be ruled out”.