RBI imposes Rs. 84.50 lakh fine on Central Bank of India

The RBI announced on Friday that it has imposed a fine of Rs. 84.50 lakh rupees on the Central Bank of India (the Bank) for failing to comply with certain provisions of norms related to the classification and reporting of fraud.

As of March 31, 2021, the Reserve Bank had conducted a statutory inspection to provide a regulatory assessment of the bank’s financial condition.

Review of the reports revealed that the public lender had failed to report certain accounts to RBI as fraudulent within seven days of the Joint Lenders’ Forum (JLF) decision to declare the accounts fraudulent.

It had collected SMS notification fees from its customers on a flat-rate basis rather than based on actual usage.

RBI had issued a notice to the bank asking it to provide reasons why it should not be penalized for failing to comply with the instructions.

“After considering the bank’s response to the notice and the oral submissions made during the in-person interview, RBI concluded that the allegation of failure to comply with the above RBI instructions was well founded and warranted the imposition of a fine…” reads in the head office said the bank.

However, RBI added that the penalty was based on failures in regulatory compliance and was not intended to make a statement about the validity of any transactions or agreements the bank has entered into with its customers.

Also Read: IRCTC Q4 Results Preview: PAT Likely to Grow by a Fifth, but Margin Could Shrink by Over 450 Basis Points

Also Read: BHEL Q4 Results: PAT Down More Than 30%, Revenue Up 2% YoY