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

RBI slaps Rs 2.50-crore fine on Bank of Baroda over non-compliance

It is alleged that there was illegal transfer and misuse of funds from government accounts

Press Trust of India  |  New Delhi 

Bank of Baroda
The Bank of Baroda headquarters in Mumbai

on Tuesday said the RBI has imposed Rs 2.50 crore fine for non-compliance of directions issued to it with regard to Bihar-based NGO Srijan Mahila Vikas Sahyog Samiti Ltd.

"The in exercise of powers conferred under the Banking Regulation Act, 1949, has imposed a penalty aggregating to Rs 2.50 crore on the bank for non-compliance with the directions issued by the RBI in various accounts of Srijan Mahila Vikas Sahyog Samiti Ltd at Bhagalpur Branch," said in a regulatory filing.

The Central Bureau of Investigation (CBI) is probing the matter in the Rs 1,000 crore scam allegedly involving Bihar-based NGO Srijan Mahila Vikas Sahyog Samiti and government officers.

Unidentified officers of Bank of Baroda, and the 'Samiti' have been named as accused in the FIRs registered for alleged criminal conspiracy, cheating, forgery among others.

Besides, FIRs have also been registered in Patna and Delhi.

It is alleged that there was illegal transfer and misuse of funds from government accounts in Bhagalpur district to accounts of the Samiti through a conspiracy hatched between government officials and office bearers of the NGO.

It is alleged that the NGO, which was working towards imparting training to women, had pilfered government funds in connivance with the bank officials and state government officials between 2003 and 2014.

As per initial probe by local police, the Samiti allegedly procured cheque books from and forged signature of the district magistrate to transfer government funds to its account.

First Published: Tue, November 19 2019. 16:45 IST
RECOMMENDED FOR YOU