RBI imposes Rs 1.12 cr penalty on Bank of Maharashtra for non-compliance

Reserve Bank of India (RBI) has imposed a penalty of Rs 1.12 crore on Bank of Maharashtra for non-compliance with certain directions, including those related to Know Your Customer (KYC) norms.

The penalty has been imposed for violation provisions related to KYC, creation of a Central Repository of Large Common Exposures - Across Banks, and guidelines on managing risks and code of conduct in outsourcing of financial services by banks.

The Statutory Inspection for Supervisory Evaluation (ISE) of the public sector bank was conducted with reference to its financial position as on March 31, 2020, it said in a release on Monday.

Also, scrutinies were conducted in the matter of non-credit of customs duty to the government account by the bank, it added.

In another release, RBI said it has imposed a penalty of Rs 12 lakh on Rajkot Nagarik Sahakari Bank, Rajkot for non-compliance with the direction on Interest Rate on Deposits'.

Separately, the central bank has imposed a penalty of Rs 25 lakh on The Haryana State Co-operative Apex Bank, Chandigarh for contraventions with RBI directions on housing finance.

According to the releases, the penalties are based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.