RBI Imposes Monetary Penalty Of Rs 36 Lakh On Central Bank of India

The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs 36 lakh on Central Bank of India for non-compliance with certain directions by RBI on 'Customer Protection–Limiting Liability of Customers in Unauthorised Electronic Banking Transactions'.

"This action is based on the 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," RBI said in a statement.

RBI had conducted a statutory Inspection for Supervisory Evaluation (ISE) of the bank with reference to its financial position as of March 31, 2020. The inspection resulted in non-compliance with the aforesaid directions to the extent the bank failed to credit (shadow reversal) the amount involved in the unauthorized electronic transaction to the customer’s account within 10 working days from the date of notification by the customer.

RBI on Friday said, 'After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions." 

(With Inputs From Agencies)