The Reserve Bank of India (RBI) fined BNP Paribas ₹31,80,000 for not complying with its guidelines on interest rates for loans. A 2023 inspection revealed the bank did not use a uniform external benchmark for certain loans. Despite BNP Paribas' responses and hearings, RBI confirmed the violation and imposed the penalty. This action focuses on regulatory non-compliance and does not affect customer transactions. RBI may take further actions if necessary.
The Repo Rate is a key tool used by central banks, like the Reserve Bank of India (RBI), to control the money supply in the economy. The term "Repo" stands for Repurchase Agreement. In simple terms, it’s the interest rate at which commercial banks borrow money from the central bank.more