In a firm move, the Reserve Bank of India (RBI) has taken strict action against the state-owned Central Bank of India.
The RBI has imposed a hefty penalty of Rs 84.50 lakh on the Central Bank of India due to its failure to comply with certain provisions.
RBI Imposes Penalty on Central Bank of India for This
In a recent announcement, the Reserve Bank of India (RBI) revealed that it has imposed a penalty on the Central Bank of India due to non-compliance with transaction-related rules. However, customers need not worry as this decision will not have any negative impact on the services provided by the bank.
Penalty Imposed on May 25th
The RBI took this action after thoroughly examining the risk assessment report and inspection report of the bank. The penalty was imposed on the Central Bank of India for failing to adhere to the guidelines outlined in the RBI’s directions dated May 25th, 2016, regarding fraud classification and reporting by commercial banks and select financial institutions, as well as the ‘Master Circular’. The RBI found that the bank had not followed the instructions given to them.
RBI Penalizes Canara Bank Too
It’s worth noting that the RBI had also imposed a fine of Rs 2 crore on Canara Bank last week. Additionally, in the past 24 hours, the RBI has imposed fines on four cooperative banks, including one government-owned bank. The total penalty amount imposed on the cooperative banks by the RBI is Rs 44 lakh. Tamil Nadu State Co-operative Bank based in Chennai has been fined Rs 16 lakh. Furthermore, fines have also been imposed on Bombay Mercantile Co-operative Bank, Janata Sahakari Bank based in Pune, and Baran Nagrik Sahakari Bank in Baran, Rajasthan.