RBI imposes ₹84.50 lakh penalty on Central Bank of India

The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of €84.50 lakh on… Central Bank of India (the Bank) for failure to comply with certain provisions of the Code relating to fraud classification and reporting.

the reserve bank Has conducted the statutory inspection of the supervisory assessment of the Bank with reference to its financial position as at 31 March 2021.

Examination of the reports revealed that the public sector lender failed to report fraud to certain RBI accounts within seven days of the Joint Lenders Forum (JLF) decision to declare the accounts as fraud.

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It has refunded SMS Alert charges from its customers on a flat basis and not on an actual usage basis.

The Reserve Bank of India has issued a notice to the bank advising it to show why it should not be penalized for non-compliance with the directives.

“After considering the bank’s response to the notice and the oral reports given during the personal hearing, the Reserve Bank of India (RBI) has come to the conclusion that the charge of non-compliance with the above-mentioned RBI directives is warranted and warrants the imposition of a monetary penalty…” the bank said. .

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However, the RBI added that the penalty is based on shortcomings in regulatory compliance and is not intended to declare the validity of any transaction or agreement entered into by the bank with its customers.