|RBI imposes fine on 9 commercial Banks for non-compliance relating to reporting of frauds|
RBI imposes fine on 9 commercial Banks for non-compliance relating to reporting of frauds
The Reserve Bank of India (RBI) in exercise of the powers conferred under various sections of the Banking Regulations Act,1949 has imposed a penalty on nine commercial banks for violations of norms including delay on the reporting of fraud in the account of Kingfisher Airlines in case of two lenders.
The RBI imposed a fine of Rs 1.5 crore on Oriental Bank of Commerce, it slapped a fine of Rs 1 crore each on Indian Overseas Bank, Punjab & Sind Bank, UCO Bank and United Bank of India. Bank of Baroda, Corporation Bank, Federal Bank, Jammu & Kashmir Bank, Punjab National Bank and State Bank of India have been fined Rs 50 lakh each.
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 banks with their customers.