By Raju Vernekar
Mumbai, June 8:
The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 04 crore on the Bank of India and a penalty of Rs 02 crore on the Punjab National Bank, for non-compliance with certain directions issued.
As per the RBI order dated June 07, 2021, a monetary penalty of Rs.4.00 crore has been imposed on the Bank of India as per the Master circular on KYC norms/AML standards/CFT/obligation of banks under PMLA 2002 dated July 01,2014, circular on “The Depositor Education and Awareness Fund Scheme 2014-section 2014- section 26 A of Banking Regulation Act 1949-Operational guidelines dated May 27,2014.
Similarly a fine of Rs. 2 crore has been has imposed, by an order dated June 07, 2021, on Punjab National Bank for non-compliance of certain provisions of directions issued by RBI contained in the Master directions on “Frauds-Classification and Reporting by commercial banks and select financial institutions dated July 01, 2016 and the circular on “Creation of a Central Repository of Large Common Exposures – Across Banks” dated September 11, 2013.
The penalty has been imposed in the exercise of powers vested in RBI under the provisions of 47A (1)(c) read with section 46(4)(i) and section 51(1) of the Banking Regulation Act, 1949.
The examination of the risk assessment reports pertaining to ISE 2018 and 2019 revealed non-compliance with/contravention of the aforesaid directions, viz., delay in reporting of frauds and not ensuring data accuracy and integrity while submitting data on CRILC platform/ to RBI, said.
The statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2019. The bank had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated January 1, 2019 pertaining to the detection of fraud in an account. Examination of the risk assessment report pertaining to the ISE and the FMR revealed non-compliance with/contravention of the aforesaid directions, viz., breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting fraud to RBI and sale of a fraudulent asset.
After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions submitted by the bank, RBI came to the conclusion that the charges of non-compliance with/contravention of the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty, RBI CGM Yogesh Dayal said in a statement.