RBI imposes monetary penalty on Central Bank of India

The Reserve Bank of India (RBI) on Friday said it has imposed a monetary penalty of Rs 36 lakh on the Central Bank of India for non-compliance with certain regulatory directions.

Central Bank of India has been penalised for non-compliance with certain directions issued by the RBI on 'Customer Protection-Limiting Liability of Customers in Unauthorised Electronic Banking Transactions'. The RBI issued the penalty order on 18th April 2022.

"This action is based on the 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," the RBI said in a statement.

The statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2020 and the examination of the Risk Assessment Report, Inspection Report and all related correspondences pertaining to the same, revealed, inter alia, non-compliance with the aforesaid directions to the extent the bank failed to credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer, the RBI said.

In furtherance to the same, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charge of non-compliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions, the RBI added.

( With inputs from ANI )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor