The Reserve Bank of India on Friday said it has imposed a monetary penalty of Rs 2 crore on Bank of Maharashtra for non-compliance with certain norms.
Non Compliance of norms
The bank was charged for non-compliance with certain provisions of the directions contained in the Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016, the central bank said in a release.
The Bank also violated the RBI directions on Concurrent Audit System in Commercial Banks, disclosure of customer complaints and unreconciled balances on account of ATM transactions, and Micro, Small and Medium Enterprises (MSME) Sector – Restructuring of Advances.
Penalty Act,1949
The RBI has imposed penalty in the exercise of powers vested in the RBI under the Banking Regulation Act, 1949.
RBI Commented
“This action is based on 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.”
How violation revealed?
RBI had conducted a statutory inspection of the bank on its financial position as of March 31, 2018, and March 31, 2019, and the Risk Assessment Reports (RARs) which revealed violations.
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