Monetary Penalty: After Central Bank of India, RBI has now imposed heavy penalty on Bank of Maharashtra. RBI has imposed this penalty for violation of rules related to protection of interests of customers.
RBI Imposes Monetary Penalty On Bank of Maharashtra: Keeping in mind the interests of the customers, Reserve Bank of India (RBI) keeps taking action on banks from time to time. RBI has now imposed a penalty of Rs 1.12 crore on Bank of Maharashtra for default in complying with ‘Know Your Customer’ (KYC) and other instructions.
Why was the fine imposed?
This heavy penalty has been imposed by the central bank on Bank of Maharashtra for violation of risk management guidelines, rules related to KYC and rules in outsourcing of financial services by banks.
RBI statement
In a statement issued by the RBI, it was said that the Statutory Inspection and Monitoring Assessment (ISE) of the bank was done in line with the financial position as on March 31, 2020. Apart from this, investigation was also done by the bank for not putting the customs duty in the account of the government.
Citizen Co-Operative Bank also fined
In another information, the central bank said that a fine of Rs 12 lakh has also been imposed on Rajkot Nagarik Sahakari Bank, Rajkot for non-compliance of orders regarding interest rate on deposits. Earlier, the central bank had imposed a penalty on the Central Bank of India (CBI).
36 lakh fine on central bank
RBI had imposed a fine of 36 lakhs on the Central Bank for violating the rules related to the protection of customers. In the information given by RBI, it was told that it was investigated and a ‘show cause’ notice was issued to the bank, after which the RBI has taken this decision.
Actually, the central bank RBI is not satisfied with this answer. RBI said that the CBI has not followed the rules to protect the interests of the customers. Based on this, RBI has taken this action.
