RBI imposed INR 84.50 lakh penalty on Central Bank of India

New Delhi: The Reserve Bank of India (RBI) has, by an order dated May 25, 2023 imposed a monetary penalty of Rs 84.50 lakh (Rupees Eighty four lakh fifty thousand only) on the Central Bank of India (the bank) for non-compliance with certain provisions of ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’ and ‘Master Circular on Customer Service in Banks’.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949.

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This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

 

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After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

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