RBI fines Oriental Bank Rs 1.5 cr for delay in reporting KFA fraud

Oriental Bank of Commerce on Saturday said the RBI has imposed a fine of Rs 1.5 crore on it for delay in reporting fraud in the Kingfisher Airlines account.

This is to inform that the RBl in exercise of powers conferred under various sections of the Banking Regulation Act, 1949 has imposed an aggregate penalty of Rs 1.5 crore on the bank for failure to classify and report the account of Kingfisher Airlines Limited as fraud, the state-owned lender said in a regulatory filing.

The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order, it added.

The RBI also fined Punjab National Bank, Bank of Baroda and the State Bank of India Rs 50 lakh each for non-compliance relating to reporting of frauds.