Central Bank of India: RBI has found Central Bank of India guilty of violating several guidelines. Due to this, a huge fine has been imposed on it.
Central Bank of India: Reserve Bank of India (RBI) has taken a big action against Central Bank of India. RBI has imposed a fine of more than Rs 1.45 lakh against the bank for violating the rules. The Reserve Bank has taken this action against the public sector Central Bank of India by issuing an order on June 11.
Loan, advance and customer protection rules were violated
According to RBI, Central Bank of India has been found guilty of violating some guidelines of the central bank related to loan and advance as well as customer protection. RBI has taken this action under the Banking Regulation Act, 1949. Central Bank has been ordered to pay a fine of Rs 1,45,50,000.
RBI not satisfied with the bank’s reply
RBI had examined the financial position of Central Bank as on March 31, 2022. It was found that RBI guidelines were not being followed properly. After this, a show cause notice was issued to Central Bank of India by the central bank. After the bank’s reply to the notice and the arguments given during the hearing, RBI decided that the allegations leveled against the bank are correct. Therefore, a fine should be imposed on it.
RBI said – there will be no adverse effect on customers
Central Bank of India had sanctioned a working capital loan to a corporation in lieu of the amount received from the government through subsidy. Apart from this, it failed to credit the amount of unauthorized electronic transaction to the customer’s account within 10 working days. Also, some customers were not able to pay compensation even within 90 days of the complaint. RBI has clarified that this action has been taken against the bank. This decision will not have any adverse effect on the customers.
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