The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1.27 crore on on Bank of Maharashtra (BoM) for non-compliance with certain directions issued by RBI on ‘Loan System for Delivery of Bank Credit’, ‘Cyber Security Framework in Banks’ and ‘Know Your Customer’.
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| RBI imposes 1.27 crore penalty on Bank of Maharashtra |
RBI imposes Rs. 1.27 crore penalty on Bank of Maharashtra (BoM)
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,27,20,000/- (Rupees One Crore Twenty Seven Lakh and Twenty Thousand only) on Bank of Maharashtra for non-compliance with certain directions issued by RBI on ‘Loan System for Delivery of Bank Credit’, ‘Cyber Security Framework in Banks’ and ‘Know Your Customer’.
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This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank with reference to its financial position as on March 31, 2023 and Information Technology (IT) examination of the bank in May 2023 were conducted by RBI.
The bank failed to ensure that the minimum outstanding ‘loan component’ was, at least, the specified percentage of the sanctioned fund based working capital limit for certain borrowers.
The bank failed to implement fraud risk management system across all delivery channels.
The bank had allotted multiple customer identification code to certain customers instead of a Unique Customer identification Code (UCIC) for each customer.
The bank had allowed operations in certain small accounts that did not meet the regulatory requirement.
Static Current Affairs related to RBI for upcoming exams
- Establishment of Reserve Bank of India (RBI): 1 April 1935
- Headquarters of RBI: Mumbai, Maharashtra, India
- Governor of RBI: Shaktikanta Das, IAS
- Deputy Governor of RBI: M. Rajeshwar Rao, Swaminathan J, T. Rabi Sankar & Dr. M.D. Patra
- Ownership of RBI: Ministry of Finance , Government of India
Current Policy Rates
- Policy Repo Rate: 6.50%
- Reverse Repo Rate: 6.25%
- Marginal Standing Facility Rate: 6.75%
- Bank Rate: 6.75%
Current Reserve Ratio
- CRR: 4.50%
- SLR: 18.00%
Static Current Affairs related to Bank of Maharashtra for upcoming exams
- Established: 16 September 1935
- Headquarters: Pune, Maharashtra India
- Number of Branches: 2263
- MD & CEO: Nidhu Saxena
- Executive Director: Rohit Rish i& Asheesh Pandey
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