Penalty of Rs 2 crore imposed on Corporation bank and Rs 1 crore each on BoB, SBI and UBIThe Reserve Bank of India (RBI) has imposed, by orders dated 31 January 2019, monetary penalty for non-compliance with various directions issued by RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, on four banks
RBI has imposed a penalty of Rs 1 crore on Bank of Baroda, Rs 2 crore on Corporation Bank, Rs 1 crore on State Bank of India and Rs 1 crore on Union Bank of India.
These penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI.
This action is based on 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.
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