RBI slaps Rs 1 crore fine on Bank of Maharashtrahttps://indianexpress.com/article/business/banking-and-finance/rbi-slaps-fine-on-bank-of-maharashtra-5541910/

RBI slaps Rs 1 crore fine on Bank of Maharashtra

This penalty has been imposed taking into account the failure of the bank to adhere to directions issued by the RBI, the central bank said in a statement.

RBI slaps Rs 1-cr fine on Bank of Maharashtra
This penalty has been imposed taking into account the failure of the bank to adhere to directions issued by the RBI, the central bank said in a statement. (File photo)

The Reserve Bank of India (RBI) Wednesday imposed a Rs 1-crore penalty on state-owned Bank of Maharashtra (BoM) for non-compliance of Know Your Customer guidelines and fraud-classification norms.

This penalty has been imposed taking into account the failure of the bank to adhere to directions issued by the RBI, the central bank said in a statement.

“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,” it said.

Last year, the RBI had imposed a penalty of Rs 1 crore on BoM on account of delay on the part of the bank to detect and report fraud in an account.