Money & Banking

RBI slaps ₹1.75 crore penalty on Indian Bank

Mumbai | Updated on November 20, 2019

The Reserve Bank of India has imposed a monetary penalty aggregating to ₹1.75 crore on Indian Bank for non-compliance with the directions issued by it on opening of Savings Bank accounts of a co-operative society, window dressing of the Balance Sheet as on March 31, 2018 and delayed reporting of frauds.

Indian Bank, in a regulatory filing, elaborated that the penalty has been imposed for non-adherence with RBI directions on know-your-customer (KYC)/ anti-money laundering (ALM) vis-a-vis opening savings bank accounts of a co-operative society and window dressing of the Balance Sheet as on March 31, 2018 by loan disbursal amounting to ₹508.28 crore.

The Chennai-headquartered public sector bank said, "This penalty has been imposed in exercise of powers vested in RBI under...the Banking Regulation Act, 1949. The said penalty will not have any material impact on the Bank."

On Tuesday, Bank of Baroda informed the exchanges that the RBI imposed a penalty aggregating to ₹2.50 crore on it for non-compliance with the regulatory directions in various accounts of Srijan Mahila Vikas Sahyog Samiti Ltd. at Bhagalpur Branch.

Published on November 20, 2019

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