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RBI slaps Rs 3.5-cr fine on Corp Bank, Allahabad Bank for flouting norms

Press Trust of India  |  New Delhi 

The Reserve has imposed a cumulative penalty of Rs 3.5 crore on and for violation of various norms.

"This is to inform that ..has imposed an aggregate penalty of Rs 20 million on our bank due to some lapses in monitoring of end use of funds and exchange of information with other banks in respect of one borrower along with some other banks," said in a regulatory filing Friday.

The bank has already taken necessary preventive measures to avoid such recurrence, it added.

Bank said the RBI has imposed a penalty of Rs 1.5 crore for not monitoring end use of funds, among other violations.

"We have to inform you that the ..has imposed a penalty of Rs 1.5 crore on the bank 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. 21:00 IST