The Reserve Bank of India (RBI) on Monday said it has imposed a monetary penalty of Rs 1.12 crore on the state-run Bank of Maharashtra for non-compliance.
The non-compliance is related to directions issued by the RBI under the Know Your Customer (KYC) Directions, of 2016, the banking regulator said in a release. This penalty has been imposed in the exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949 (the Act), it added.
The central bank also mentioned that its 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.
In the notice, RBI also said that upon the examination of the Risk Assessment Report & Inspection Report pertaining to the Statutory Inspection for Supervisory Evaluation (ISE), scrutiny reports, revealed non-compliance related to “failure to allot Unique Customer Identification Codes (UCIC) to its individual customers, failure to ensure integrity and quality of data submitted to RBI in CRILC.” The bank also did not enter into any Service Level Agreement (SLA) and failed to review the outsourcing arrangement for one of the outsourced financial services, RBI found.
“RBI came to the conclusion that the 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,” the statement said.
Besides, the RBI has also imposed a monetary penalty of Rs 25 lakh on Haryana State Co-operative Apex Bank Limited for non-compliance with its directions on Housing Finance, it said in a separate release. It has also imposed a monetary penalty of Rs 12 lakh on Rajkot Nagarik Sahakari Bank Limited for non-compliance on ‘Interest Rate on Deposits.
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