{"id":324511,"date":"2024-06-16T14:00:45","date_gmt":"2024-06-16T08:30:45","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=324511"},"modified":"2024-06-16T13:15:22","modified_gmt":"2024-06-16T07:45:22","slug":"rbi-imposes-penalty-of-1-45-crore-on-central-bank-of-india-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/16\/rbi-imposes-penalty-of-1-45-crore-on-central-bank-of-india-legal-news\/","title":{"rendered":"Reserve Bank of India imposes penalty of 1.45 Crore on Central Bank of India for non-compliance with directions"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">By an order dated 11-06-2024, the Reserve Bank of India (&#8216;RBI&#8217;) imposed a monetary penalty of Rs. 1,45,50,000 on the Central Bank of India for non-compliance with certain directions issued by the RBI on &#8216;Loans and Advances &mdash; Statutory and Other Restrictions&#8217; and &#8216;Customer Protection &mdash; Limiting Liability of Customers in Unauthorized Electronic Banking Transactions&#8217;.<\/p>\n<p style=\"font-weight: bold;\">Background<\/p>\n<p style=\"margin-bottom: 3%;\">A statutory inspection for Supervisory Evaluation (ISE 2022) of the Central Bank was conducted by RBI with reference to its financial position on 31-03-2022.<\/p>\n<p style=\"margin-bottom: 3%;\">After providing a show-cause notice, RBI found that the charges against the Central Bank were sustained and warranted the imposition of a monetary penalty.<\/p>\n<p>The charges against the Central Bank were:<\/p>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>\n<p>It sanctioned a working capital demand loan to a Corporation against amounts receivable from the Government by way of subsidies.<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">It failed to credit (shadow reversal) the amount involved in a few instances of unauthorized electronic transactions to the customers&#8217; account within 10 working days from the date of notification by the customer, resolve complaints, and provide compensation to certain customers within 90 days from the date of receipt of complaint.<\/p>\n<\/li>\n<\/ol>\n<p style=\"margin-bottom: 3%;\">RBI further clarified that this action was based upon deficiencies in regulatory compliance and does not relate to the validity of any transaction or agreement entered into by the Central Bank with its customers.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">RBI imposed penalty on Central Bank of India for failing to comply with directions for Loans and Advances as well as Customer Protection.<\/p>\n","protected":false},"author":67011,"featured_media":323058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[49695,34616,69893,2732],"class_list":["post-324511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-central-bank-of-india","tag-monetary-penalty","tag-non-compliance-of-regulatory-directions","tag-Reserve_Bank_of_India"],"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 penalty of 1.45 Crore on Central Bank of India | SCC Times<\/title>\n<meta name=\"description\" content=\"Reserve Bank of India imposes penalty of 1.45 Crore on Central Bank of India for non-compliance with directions\" \/>\n<meta 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The penalty has been\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":"","width":0,"height":0},"classes":[]},{"id":326003,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/07\/08\/rbi-imposes-penalty-of-1-31-crore-on-punjab-national-bank-for-non-compliance-with-directions-legal-news\/","url_meta":{"origin":324511,"position":2},"title":"RBI imposes penalty of Rs. 1.31 Crore on Punjab National Bank for non-compliance of directions on &#8216;Loans and Advances&#8217; and &#8216;KYC&#8217;","author":"Editor","date":"July 8, 2024","format":false,"excerpt":"The Reserve Bank of India imposed monetary penalty on Punjab National Bank due to deficiencies in regulatory compliance.","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Reserve Bank of India","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/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\/2024\/05\/Reserve-Bank-of-India.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=700%2C400&ssl=1 2x"},"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":324511,"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":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":324511,"position":4},"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":[]},{"id":217669,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/03\/rbi-imposes-monetary-penalty-on-7-banks-for-non-compliance-with-certain-directions-of-rbi\/","url_meta":{"origin":324511,"position":5},"title":"RBI imposes &#8216;Monetary Penalty&#8217; on 7 Public Sector Banks","author":"Bhumika Indulia","date":"August 3, 2019","format":false,"excerpt":"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 on \u201cCode of Conduct for Opening and Operating Current Accounts\u201d, \u201cOpening of Current Accounts by Banks - Need for Discipline\u201d, \u201cDiscounting\/\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":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/324511","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\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=324511"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/324511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/323058"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=324511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=324511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=324511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}