RBI imposes Rs 36 lakh fine on Central Bank of India for violating customer protection norms


Photo source: PTI

RBI fines Central Bank of India Rs 36 lakh for violating consumer protection rules

Highlights

  • On Friday, the Reserve Bank said it had imposed a fine of Rs 36 lakh on the Central Bank of India.
  • The RBI, by an order dated April 18, 2022, imposed a financial penalty.
  • The penalty was imposed in accordance with the provisions of the Banking Regulation Act, 1949.

The Reserve Bank on Friday said it had fined public sector lender Central Bank of India Rs 36 lakh for violating consumer protection rules. The Reserve Bank of India (RBI), in an order dated April 18, 2022, imposed a fine of Rs. Unauthorized electronic banking transactions’, the RBI said in a release.

The penalty was imposed under the provisions of the Banking Regulation Act, 1949, the regulator said. “The move is based on regulatory compliance deficits and is not intended to highlight the legitimacy of any transaction or agreement entered into by the bank with its customers,” it added.

The RBI conducted a statutory inspection on March 31, 2020 for a supervisory assessment of the bank. It disagrees with the relevant guidelines on how much credit the bank has failed to do (shadow reversal) and the amount involved involves unauthorized electronic transactions in the customer’s account within 10 working days from the date of notification, the RBI said.

The regulator said it had sent a notice to the bank to explain why it should not be fined for failing to comply with the instructions.

After considering the bank’s response to the notice, the oral submissions made at the private hearing and the examination of additional deposits made by it, the RBI has come to the conclusion that the above allegation of non-compliance with the above RBI guidelines should have been substantiated and imposed. Financial penalties, the amount of non-compliance with such instructions, “the release said.

Read more: RBI extends trading time; The stock market will start on April 18 at 9 am

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