Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
The Reserve Bank of India (RBI) has levied significant fines on two banks for non-compliance with regulatory norms. The Central Bank of India has been fined ₹1.45 crore, while Sonali Bank PLC’s Indian wing has incurred a penalty of ₹96.4 lakh. These fines were imposed due to violations related to customer protection and Know Your Customer (KYC) norms, according to a report by PTI.
The Central Bank of India faced a fine of ₹1.45 crore for multiple infractions. One major issue was the sanctioning of a working capital demand loan to a corporation against amounts receivable from the government by way of subsidies. Additionally, the bank failed to credit the amounts involved in unauthorized electronic transactions back to customers’ accounts within the stipulated time frame, a process known as shadow reversal.
The penalty followed a Statutory Inspection for Supervisory Evaluation (ISE 2022) conducted by the RBI, which assessed the bank’s financial position as of March 31, 2022. The RBI found that the bank had committed several violations warranting the imposition of the monetary penalty. The RBI’s decision was made after considering the bank’s response to the notice, oral submissions during the personal hearing, and additional submissions provided by the bank.
In a separate press release, the RBI announced a penalty of ₹96.4 lakh on Sonali Bank PLC for non-compliance with specific regulatory norms, including the KYC Directions of 2016. Sonali Bank PLC operates as a commercial bank from Bangladesh with an Indian branch.
The RBI clarified that the action was based on deficiencies in statutory and regulatory compliance and does not reflect on the validity of any transactions or agreements made by the banks with their customers. The imposition of monetary penalties is without prejudice to any further actions that the RBI might initiate against the banks.
The RBI’s actions underscore its commitment to enforcing regulatory compliance and protecting customer interests. By imposing these penalties, the RBI aims to ensure that banks adhere strictly to the established norms and guidelines, maintaining the integrity and stability of the banking system.
The fines on the Central Bank of India and Sonali Bank PLC highlight the importance of adhering to regulatory norms, especially those related to customer protection and KYC procedures. Both banks will need to address these deficiencies and improve their compliance frameworks to avoid further penalties and ensure the protection of their customers.
Sources By Agencies
