The Central Bank of India has been fined Rs 1.45 crore by the Reserve Bank of India for not following certain rules related to "loans and advances" and "customer protection", according to an exchange filing by the bank.
The RBI had conducted a statutory inspection for Supervisory Evaluation (ISE 2022) of the Central Bank of India with reference to its financial position as of March 31, 2022.
Following this, the bank was issued a notice to explain why it should not be penalised for failing to comply with these regulations. After reviewing the bank's response, the RBI concluded that the charges were valid.
The Central Bank of India was found to have sanctioned a working capital loan to a corporation against receivables from government subsidies and failed to promptly credit the amounts involved in a few unauthorised electronic transactions to the customers' accounts.
In another announcement, the RBI stated that Sonali Bank Plc. has been fined Rs 96.4 lakh for not complying with certain rules, including the KYC Directions, 2016.
The RBI clarified that these penalties were due to deficiencies in regulatory compliance and were not meant to question the validity of any transactions or agreements made by these banks with their customers.
(With inputs from PTI)
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