RBI Imposes Rs 1.45 Crore Fine On Central Bank of India for Non-Compliance - Details

The RBI issued a notice to the Central Bank of India, requesting an explanation as to why a penalty should not be imposed for the non-compliance. After reviewing the bank's response, the RBI determined that the charges were substantiated.
RBI Penalises Central Bank of India for Regulatory Breaches

RBI Penalises Central Bank of India for Regulatory Breaches (Image Source: iStockphoto)

The Reserve Bank of India (RBI) announced on Friday that it has imposed a penalty of Rs 1.45 crore on the Central Bank of India for failing to comply with certain directives concerning 'loans and advances' and 'customer protection'. This action followed a statutory inspection for Supervisory Evaluation (ISE 2022) conducted by the RBI, referencing the financial position of the Central Bank of India as of March 31, 2022.
The RBI issued a notice to the Central Bank of India, requesting an explanation as to why a penalty should not be imposed for the non-compliance. After reviewing the bank's response, the RBI determined that the charges were substantiated.
The bank was found to have sanctioned a working capital demand loan to a corporation against amounts receivable from the government as subsidies. Additionally, it failed to credit the amounts involved in several instances of unauthorized electronic transactions to customers' accounts within the stipulated timeframe.
In a separate announcement, the RBI stated that a penalty of Rs 96.4 lakh has been imposed on Sonali Bank PLC for non-compliance with specific norms, including the KYC (Know Your Customer) Directions of 2016.
The RBI clarified that the penalties were imposed due to deficiencies in regulatory compliance and are not intended to question the validity of any transactions or agreements entered into by the banks with their customers.
On Friday, the shares of Central Bank closed at Rs 65.45, 0.47 per cent down from the previous day's closing. The 52 week high and low of the share is Rs 76.90 and Rs 26.55 respectively.
Arjit Saxena author

Arjit Saxena is a Senior Correspondent at ET NOW and Times NOW Business Section. He writes on Stock Market, Economy, Startups, Corporates, and Persona...View More

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