The Reserve Bank of India has initiated an inquiry into how 104 branches of 21 major banks in Noida got permissions to start operations from residential plots in clear violation of Noida authority's by-laws.
These branches were ordered by the Supreme Court on December 5 last year to vacate the premises or face sealing action. It had given the banks two months' time to comply. However, in February the sealing action against the banks was suspended.
RBI guidelines for opening bank branches state, "Banks should ensure that there are no restrictions imposed by the local development or other authorities for setting up commercial establishment in the locality where the branch is proposed to be opened." This puts the onus on the banks to ensure that no rules are violated.
RBI's inquiry follows a spate of applications filed under the Right to Information Act by RTI activist and armed forces veteran Lokesh Batra. After the Supreme Court order, Batra filed applications to seek information on what steps the banks would take to ensure the safety of belongings of customers in lockers.
RBI was forced to convene meetings and instructed banks to ensure that customers were routinely informed through emails, SMS and notices at branches regarding the alternate arrangements made for the conduct of smooth banking functions, including locker operations.
After these applications, Batra pointed to RBI last month that it was the bank's responsibility to ensure that its premises followed by-laws of local authority.
The inquiry would include major banks such as Allahabad Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, Bank of India, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, HDFC Bank, ICICI Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, IDBI Bank, Vijaya Bank and Union Bank of India.
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