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RBI fines Allahabad Bank Rs 1.5 cr for not monitoring fund use, fraud reporting delay

Press Trust of India  |  New Delhi 

State-owned on Friday said the RBI has imposed a penalty of Rs 1.5 crore on the lender for not monitoring end use of funds, among other violations.

"We have to inform you that the Reserve of ..has imposed a penalty of Rs 1.5 crore on the for not monitoring the end use of funds, delay in classification and reporting of fraud and non-adherence with RBI guidelines during restructuring of accounts in respect of one of its borrowers," the bank said in a regulatory filing.

The amount of penalty is not material considering the size of the bank, it added.

The Kolkata-headquartered lender said it has taken necessary preventive measures to strengthen internal controls to avoid such recurrence.

Earlier this week, the regulator had imposed penalties on Axis Bank, and for violation of various norms.

The gross penalties on these three lenders amounted to Rs 5.20 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 18:00 IST