{"id":217669,"date":"2019-08-03T14:00:20","date_gmt":"2019-08-03T08:30:20","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=217669"},"modified":"2019-08-03T11:28:34","modified_gmt":"2019-08-03T05:58:34","slug":"rbi-imposes-monetary-penalty-on-7-banks-for-non-compliance-with-certain-directions-of-rbi","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/03\/rbi-imposes-monetary-penalty-on-7-banks-for-non-compliance-with-certain-directions-of-rbi\/","title":{"rendered":"RBI imposes &#8216;Monetary Penalty&#8217; on 7 Public Sector Banks"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Reserve Bank of India (RBI) has, by an order dated July 31, 2019, imposed monetary penalty on seven banks for non-compliance with certain provisions of directions issued by RBI<\/strong> on \u201cCode of Conduct for Opening and Operating Current Accounts\u201d, \u201cOpening of Current Accounts by Banks &#8211; Need for Discipline\u201d, \u201cDiscounting\/ Rediscounting of Bills by Banks\u201d, \u201cReserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016\u201d, \u201cEnd Use of Funds \u2013 Monitoring \u201d and \u201cDeposits on Balance Sheet Date\u201d, as detailed below:<\/p>\n<table class=\"tablebg\" border=\"0\" width=\"70%\" cellspacing=\"1\" cellpadding=\"0\" align=\"center\">\n<tbody>\n<tr class=\"head\">\n<td align=\"center\" width=\"11%\">Sl. No.<\/td>\n<td align=\"center\" width=\"52%\">Name of the bank<\/td>\n<td align=\"center\" width=\"37%\">Amount of penalty<br \/>\n(Rs in crore)<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">1.<\/td>\n<td>Allahabad Bank<\/td>\n<td align=\"center\">2.0<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">2.<\/td>\n<td>Bank of Baroda<\/td>\n<td align=\"center\">1.5<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">3.<\/td>\n<td>Bank of India<\/td>\n<td align=\"center\">1.5<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">4.<\/td>\n<td>Bank of Maharashtra<\/td>\n<td align=\"center\">2.0<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">5.<\/td>\n<td>Indian Overseas Bank<\/td>\n<td align=\"center\">1.5<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">6.<\/td>\n<td>Oriental Bank of Commerce<\/td>\n<td align=\"center\">1.0<\/td>\n<\/tr>\n<tr>\n<td align=\"center\">7.<\/td>\n<td>Union Bank of India<\/td>\n<td align=\"center\">1.5<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\">The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, taking into account the failure of the banks to adhere to the aforesaid directions issued by RBI. 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 banks with their customers.<\/p>\n<p class=\"head\" style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify;\">A scrutiny was carried out by RBI in the accounts of the companies of a Group and it was observed that the banks had failed to comply with provisions of one or more of the directions issued by RBI as mentioned above. Based on the findings of the scrutiny, Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the replies received from the banks, oral submissions made in the personal hearings, where sought by the banks, and examination of additional submissions, if any, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were sustained and warranted imposition of monetary penalty on aforementioned seven banks, based on the extent of non-compliance in each bank.<\/p>\n<hr \/>\n<p><strong>[Press release dt. 02-08-2019]<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>Reserve Bank of India<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reserve Bank of India (RBI) has, by an order dated July 31, 2019, imposed monetary penalty on seven banks for non-compliance with <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8051,2],"tags":[34616,2627,36911,2611],"class_list":["post-217669","post","type-post","status-publish","format-standard","hentry","category-business_news","category-news","tag-monetary-penalty","tag-Penalty","tag-psu-banks","tag-RBI"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI imposes &#039;Monetary Penalty&#039; 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Background: On 31-3-2023, statutory inspection for Supervision Evaluation was conducted\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"rbi","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":81901,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/10\/26\/rbi-notifies-framework-for-imposing-monetary-penalty-on-authorised-payment-systems-operatorsbanks-under-payment-and-settlement-systems-act-2007\/","url_meta":{"origin":217669,"position":2},"title":"RBI notifies framework for imposing monetary penalty on Authorised Payment Systems Operators\/Banks under Payment and Settlement Systems Act, 2007","author":"Saba","date":"October 26, 2016","format":false,"excerpt":"Framework for imposing monetary penalty on Authorised Payment Systems Operators\/Banks under Payment and Settlement Systems Act, 2007 The Payment and Settlement Systems Act, 2007 (PSS Act) has designated the Reserve Bank of India (Reserve Bank) as the authority for regulation and supervision of payment systems. Under the said Act, certain\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221562,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/30\/rbi-imposes-monetary-penalty-on-bandhan-bank-janata-sahakari-bank-ltd-and-jalgaon-peoples-co-operative-bank-ltd\/","url_meta":{"origin":217669,"position":3},"title":"RBI imposes monetary penalty on Bandhan Bank, Janata Sahakari Bank Ltd. and Jalgaon Peoples Co-operative Bank Ltd.","author":"Bhumika Indulia","date":"October 30, 2019","format":false,"excerpt":"Bandhan Bank Limited he Reserve Bank of India (RBI) has, by an order dated October 29, 2019, imposed a monetary penalty of Rs One crore on Bandhan Bank Limited (the bank) for non-compliance with the guidelines on promoter holding contained in \u2018Guidelines for Licensing of New Banks in Private Sector\u2019\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":212645,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/29\/reserve-bank-of-india-imposes-monetary-penalty-on-punjab-national-bank\/","url_meta":{"origin":217669,"position":4},"title":"Reserve Bank of India imposes monetary penalty on Punjab National Bank","author":"Bhumika Indulia","date":"March 29, 2019","format":false,"excerpt":"RBI has imposed, by an order dated February 25, 2019, a monetary penalty of Rs 20 million (Rupees Twenty Million) on Punjab National Bank (the bank) for non-compliance with directions issued by RBI. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section\u2026","rel":"","context":"In &quot;Business News&quot;","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"rbi","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/reserve-bank-of-india.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":224658,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/28\/rbi-imposes-monetary-penalty-on-jaiprakash-narayan-nagari-sahakari-bank-ltd\/","url_meta":{"origin":217669,"position":5},"title":"RBI imposes monetary penalty on Jaiprakash Narayan Nagari Sahakari Bank Ltd.","author":"Bhumika Indulia","date":"January 28, 2020","format":false,"excerpt":"The Reserve Bank of India (RBI) has, by order dated January 22, 2020, imposed a monetary penalty of Rs 1.00 lakh on -- Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar, Dist Hingoli (the bank) for non-compliance with directions issued by RBI on director related loans. The penalty has been imposed\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/02\/RBI-3.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/217669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=217669"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/217669\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=217669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=217669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=217669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}