RBI Imposes Penalty: RBI has taken strict action against Central Bank of India. Reserve Bank of India has imposed a penalty of Rs 1.45 crore on Central Bank of India.
This penalty has been imposed on the bank for not following the instructions related to ‘Loans and Advances’ and ‘Consumer Protection’. The Reserve Bank of India (RBI) has taken strict action against the Central Bank of India. RBI has imposed a fine of crores of rupees on the Central Bank of India. This fine has been imposed on the bank for not following the instructions related to ‘Loans and Advances’ and ‘Consumer Protection’. This information has been given by the RBI.
According to the report, RBI has imposed a hefty fine of Rs 1.45 crore on the Central Bank of India. RBI had conducted a statutory inspection of the Central Bank of India for its supervisory evaluation (ISE 2022) with reference to its financial position as of March 31, 2022.
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Instructions not followed
This public sector bank was issued a notice asking it to explain why it should not be fined for failing to comply with the instructions. After considering the bank’s reply, RBI found that the allegations leveled against the bank were correct. The bank had sanctioned a working capital demand loan to a company in lieu of the amount received from the government in the form of subsidy. Along with this, the bank was also unable to deposit the amount involved in some unauthorized electronic transaction cases in the customers’ account within the stipulated time.
RBI took action
In another statement, RBI said that a fine of Rs 96.4 lakh has been imposed on Sonali Bank PLC for non-compliance of certain norms including KYC Direction, 2016. RBI said that the penalties imposed in both the cases are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
