The banks had delayed or did not report frauds to RBI resulting in non-compliance with its directions.
By ETMarkets.com | Updated:
Mumbai: The Reserve Bank of India (RBI) has by an order dated July 31 imposed monetary penalty on eleven banks for non-compliance with certain provisions frauds classification and reporting by commercial banks and select financial institutions.
The banks on which penalties are imposed are Bank of Baroda, Corporation Bank, Federal Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, State Bank of India, UCO Bank and United Bank of India.
It was observed that despite having been advised by RBI to report fraud in an account ‘immediately’ in the backdrop of Central Bureau of Investigation (CBI) having initiated criminal proceedings, the banks had delayed/ did not report fraud to RBI resulting in non-compliance with directions issued by RBI, the central bank said in a release.
