New Delhi, Aug 4 (PTI): The Reserve Bank has slapped penalties on nine commercial banks, including State bank of India, Punjab National Bank and Bank of Baroda, for a host of violations, including delay on the reporting of fraud in the account of Kingfisher Airlines in case of two lenders.
The nine lenders in separate regulatory filings said that the penalties have been imposed on them for delay in reporting of frauds.
Public sector lender Punjab National Bank (PNB) said the RBI has imposed a penalty of INR 50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines.
Another state-run lender Oriental Bank of Commerce said that the RBI has imposed a fine of INR 1.5 crore on it for delay in reporting fraud in the account of Kingfisher Airlines.
The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order, the bank added.
United Bank of India and Punjab & Sind Bank said they have been fined 1 crore each by the RBI.
State Bank of India (SBI) said the RBI imposed a penalty of INR 50 lakh on it for non-compliance relating to reporting of frauds.
The RBI in exercise of the powers conferred under various sections of the Banking Regulations Act, has imposed a penalty of INR 50 lakh on the bank for non-compliance with its directions relating to reporting of frauds, it said in a filing.
Bank of Baroda and Federal Bank reported a fine of INR 50 lakh each on them for delay in reporting fraud in an account.
Corporation Bank and UCO Bank also reported imposition of fines by the RBI for delay in reporting of frauds.
The RBI in a release on Friday had said that it had imposed a fine of Rs 1 crore on Corporation Bank non-compliance with the directions on cyber security framework and frauds classification and reporting.
The central bank in another release on Friday had named seven banks that faced penalties of various amounts for violation of its direction on fraud classification and reporting and opening of current accounts.
The RBI slapped a penalty of INR 2 crore each on Allahabad Bank and Bank of Maharashtra, INR 1.5 crore each on Bank of Baroda, Bank of India, Indian Overseas Bank and Union Bank of India, and Rs 1 crore penalty on Oriental Bank of Commerce.
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.
