RBI slapped penalties on Nine banks, together with SBI, PNB and BoB, for a bunch of violations, together with delay on the news of fraud within the account of Kingfisher Airlines in case of two lenders.
The 9 lenders in separate regulatory filings aforementioned that the penalties are imposed on them for delay in news of frauds. Public sector lender Punjab National Bank (PNB) said the RBI has imposed a penalty of Rs 50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines.
Another state-run lender Oriental Bank of Commerce(OBC) aforementioned that the rbi has obligatory a fine of Rs 1.5 crore on that for delay in reporting fraud in the account of kingfisher Airlines. The aforementioned penalty is needed to be paid at intervals fourteen days from the date of receipt of the rbi order, the bank added.
United Bank of india and punjab & Sind Bank aforementioned they have been penalized 1 crore each by the rbi. State Bank of india (SBI) said the rbi imposed a penalty of Rs 50 lakh on that for non-compliance relating to reporting of frauds. The rbi in exercise of the powers given under various sections of the Banking regulations Act, has imposed a penalty of Rs 50 lakh on the bank for non-compliance with its directions relating to reporting of frauds, it said in a filing.
Bank of Baroda and Federal Bank reported a fine of Rs 50 lakh each on them for delay in reporting fraud in an account.
Corporation Bank and UCO Bank also reported imposition of fines by the RBI for delay in reporting of frauds.
The rbi in a release on friday had said that it had imposed a fine of Rs one crore on Corporation Bank non-compliance with the directions on cyber security framework and frauds classification and reporting.
The central bank in another release on friday had named seven banks that faced penalties of various amounts for violation of its direction on fraud classification and reporting and opening of current accounts. The RBI slapped a penalty of Rs 2 crore each on Allahabad Bank and Bank of Maharashtra, Rs 1.5 crore each on Bank of Baroda, Bank of India, Indian Overseas Bank and Union Bank of india, and Rs one crore penalty on Oriental Bank of Commerce.
A scrutiny was carried out by the RBI in the accounts of the companies of a Group and it was observed that the banks had failed to comply with provisions of one or more of the directions issued by the rbi, the release had said. Based on the findings of the scrutiny, notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the replies received from the banks, oral submissions made in the personal hearings, the RBI came to the conclusion that the charges of non-compliance with directions were sustained and warranted imposition of monetary penalty on seven banks, based on the extent of non-compliance in each bank, the release said.
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