You are here: Home » Finance » News » Banks
Business Standard

Reserve Bank imposes penalty on Bank of India, PNB totalling Rs 6 crore

The RBI on Monday imposed penalty aggregating to Rs 6 crore on Bank of India and Punjab National Bank for contravention of norms

Topics
Reserve Bank of India | Banking sector | Bank of India

Press Trust of India  |  Mumbai 

RBI, Reserve Bank of India
Reserve Bank of India

The RBI on Monday imposed penalty aggregating to Rs 6 crore on and for contravention of norms, including one related to "Frauds Classification and Reporting".

A penalty of Rs 4 crore has been imposed on and Rs 2 crore on

In a statement, the RBI said the statutory Inspection for Supervisory Evaluation (lSE) of was conducted with reference to its financial position as on March 31, 2019.

The bank had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated January 1, 2019 pertaining to detection of fraud in an account.

Examination of the risk assessment report pertaining to the ISE and the FMR revealed non-compliance with/contravention of directions, viz., breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting a fraud to RBI and sale of a fraudulent asset, the statement said.

In a separate statement, the Reserve Bank said the statutory ISE of was conducted with reference to its financial position as on March 31, 2018 (ISE 2018) and March 31, 2019 (ISE 2019).

The examination of the risk assessment reports pertaining to ISE 2018 and 2019 revealed non-compliance with/contravention of the aforesaid directions, viz., delay in reporting of frauds and not ensuring data accuracy and integrity while submitting data on CRILC platform/ to RBI, it said.

In both cases, notices were issued to show cause as to why penalty should not be imposed on them for such violations of the directions.

The RBI, however, added that the penalties have been imposed based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into them with their customers.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, June 07 2021. 20:33 IST
RECOMMENDED FOR YOU
.