RBI imposes monetary penalty on Central Bank of India
The penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and section 51(1) of the Banking Regulation Act, 1949.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,45,50,000 (Rupees One Crore Forty-Five Lakh Fifty Thousand only) on the Central Bank of India (the bank) for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’ and ‘Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’.
The penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and section 51(1) of the Banking Regulation Act, 1949.
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The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI regarding its financial position as of March 31, 2022.
The bank sanctioned a working capital demand loan to a Corporation against amounts receivable from the Government by way of subsidies. It failed to credit (shadow reversal) the amount involved in a few instances of an unauthorised electronic transaction to the customer’s account within 10 working days from the date of notification by the customer resolve complaints and provide compensation to certain customers within 90 days from the date of receipt of such complaints.
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