RBI had penalized 36 banks in the wake of the Nirav Modi scam in 2019, but the penal amount for each bank was small. In the case of HDFC Bank, RBI slapped a fine of ₹10 crore and stopped it from issuing credit cards. According to a senior banker at a private sector bank, RBI has become very strict. RBI has intensified its scrutiny of banks, moving towards risk-based supervision from the earlier transaction-centric approach. Under the earlier approach, RBI examined the capital adequacy, asset quality, management aspects, earnings, liquidity and systems and control of banks.

Source: Mint July 25, 2021 18:33 UTC