Banks Penalized by RBI

RBI has penalized each Axis Bank, Syndicate Bank and UCO Bank for non-compliance with earlier circular. The penalty is worth 2 crore.

Mumbai:RBI has imposed monetary penalties on three different lenders UCO Bank, Syndicate Bank and Axis Bank over deficiencies in complying in different regulatory norms.

The bank has imposed 2 crore penalty with its circular on" Collection of Account Payee Cheques” Prohibition on crediting proceeds to the Third Party Account and detection of frauds- classification and reporting by commercial banks and select FL’s.

Also penalty of Rs. 20 lakh was imposed on Axis bank for contravention of the direction contained in ‘Master circular on detection and impounding of counterfeit notes’ which is the note sorting machine.

In one more statement RBI stated that it has imposed the penalty of Rs. 1 crore on government-owned-Syndicate Bank for non-compliance with the direction contained in ‘Master Circular on Frauds-Classification and reporting’ and ‘Circular on Risk Management System in Banks’