RBI Imposes Penalties on Central Bank of India and Sonali Bank

The Reserve Bank of India has imposed a penalty of Rs 1.45 crore on the Central Bank of India for non-compliance with directions related to loans and customer protection. Additionally, a penalty of Rs 96.4 lakh was imposed on Sonali Bank PLC for KYC violations. These penalties highlight deficiencies in regulatory compliance.

The Reserve Bank of India (RBI) has levied a penalty of Rs 1.45 crore on the Central Bank of India over lapses in adhering to directions on loans and advances, as well as customer protection protocols.

This follows a statutory inspection conducted by the RBI for Supervisory Evaluation (ISE 2022), which assessed the financial health of the Central Bank of India as of March 31, 2022.

The RBI issued a notice requiring the bank to explain its non-compliance, and after reviewing the response, confirmed the charges, leading to the penalty.

Specifically, the bank was found to have sanctioned a working capital demand loan to a corporation against government receivables and failed to credit unauthorized electronic transaction amounts back to customer accounts in a timely manner.

Furthermore, the RBI also imposed a penalty of Rs 96.4 lakh on Sonali Bank PLC for failing to comply with KYC directions. The penalties, however, do not question the validity of customer transactions.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)