RBI has imposed a monetary penalty of Rs 1 crore on Bank of Maharashtra for deficiencies in regulatory compliance.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on Bank of Maharashtra for deficiencies in regulatory compliance.

Highlight

  1. RBI forced an Rs 1-crore penalty on state-owned Bank of Maharashtra
  2. For non-compliance of Know Your Customer rules and fraud-classification norms

The Reserve Bank of India (RBI) Wednesday forced an Rs 1-crore penalty on state-owned Bank of Maharashtra (BoM) for non-compliance of Know Your Customer rules and fraud-classification norms. As indicated by the RBI, the fine was forced by a request dated January 4, 2019 "for resistance with "for non-compliance with 'Master Directions on Frauds-Classification and Reporting' dated July 1, 2016, and 'Master Direction on Know Your Customer' dated February 25, 2016, issued by RBI". “This punishment has been imposed taking into account the failure of the bank to adhere to directions issued by the RBI, the national bank said in an announcement.’’

This action is based on deficiencies in regulatory compliance not intended to say anything on transaction validations or agreement stated by the bank with its clients," it said. 

A year ago, the RBI had imposed a punishment of Rs 1 crore on BoM on account of delay on the part of the bank to detect and report fraud in an account.