RBI slaps Rs 2 cr fine on Bank of Maharastra
RBI slaps Rs 2 cr fine on Bank of Maharastra
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The Reserve Bank of India on Friday said it has imposed a monetary penalty of Rs 2 crore on Bank of Maharashtra for non-compliance with certain direction on fraud classification and reporting. The RBI has imposed, by an order dated February 25, 2021, a monetary penalty of Rs 2 crore on Bank of Maharashtra for contravention of / non-compliance with certain provisions of the directions contained in the Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016.

The bank also violated the RBI directions on Concurrent Audit System in Commercial Banks, disclosure of customer complaints and unreconciled balances on account of ATM transactions, and Micro, Small and Medium Enterprises (MSME) Sector – Restructuring of Advances. This penalty has been imposed in exercise of powers vested in the RBI under the Banking Regulation Act, 1949.

“This action is based on 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,” the RBI said.

It had conducted a statutory inspection of the bank on its financial position as of March 31, 2018, and March 31, 2019, and the Risk Assessment Reports (RARs) which revealed violations, it added.

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