The Reserve Bank of India (RBI) on Friday said that it has imposed a penalty of Rs 36 lakh on the Central Bank of India for non-compliance of certain regulatory directions.
The Central Bank of India has suffered a major setback. In fact, the Reserve Bank of India (RBI) said on Friday that it has imposed a fine of Rs 36 lakh on the Central Bank of India.
The central bank said in an order issued on 18 April 2022, “The Reserve Bank of India had issued certain guidelines regarding ‘Customer Protection – Limited Responsibility of Customers in Unauthorized Electronic Banking Transactions’. The Central Bank of India has been fined for violating these guidelines.
The Reserve Bank of India said in a statement that it has imposed monetary penalty on the bank in an order issued on April 18, 2022. The central bank said that this penalty has been imposed under the provisions of the Banking Regulation Act, 1949.
The Reserve Bank further said in the statement, “This action is related to negligence in regulatory compliance and has nothing to do with the transactions and agreements entered into by the bank with its customers.
What was revealed in the investigation of RBI The
statement further said that the Reserve Bank had conducted an inspection regarding the financial situation as on March 31, 2020, in which it came to the notice of non-compliance of these instructions.
That the bank has not followed the appropriate instructions. The central bank said that the bank had not credited the amount involved in unauthorized electronic transactions to the customer’s account within 10 working days from the date of notification, which is in violation of the instructions.
RBI said it had sent a notice to the bank, suggesting it to respond as to why penalty should not be imposed on it for non-compliance with the stated directions. After the bank’s reply and hearing on the notice, RBI imposed monetary penalty.
