RBI imposed a heavy penalty on the Central Bank of India

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 36 lakh (Rupees Thirty-six lakh only) on the Central Bank of India (the bank) for non-compliance with certain directions issued by RBI on ‘Customer Protection–Limiting Liability of Customers in Unauthorised Electronic Banking Transactions.

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

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.

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.