The Central Bank of India (the bank) has been fined Rs 84.50 lakh by the RBI, it was announced on Friday, for failing to comply with several fraud categorization and reporting regulations.
In accordance with its supervisory review of the bank's financial status as of March 31, 2021, the Reserve Bank had carried out the required examination.
Examining the records showed that the public sector lender had neglected to notify the RBI of some accounts that had been declared fraudulent within seven days after the Joint Lenders' Forum's (JLF) resolution to do so.
Instead of charging clients based on actual use, it had recovered SMS alert costs on a flat rate basis.
The bank had received a letter from the RBI instructing it to provide justification as to why a penalty should not be levied against it for failing to follow the instructions.
The central bank stated: “After taking into account the bank's response to the notice and oral arguments made at the personal hearing, RBI came to the judgment that the charge of non-compliance with the aforementioned RBI directives was proved and merited imposition of monetary penalty.
The RBI said that the fine is based on regulatory compliance issues and is not meant to question the legality of any agreements or transactions the bank has with its clients.