Photo: Mint
Photo: Mint

RBI imposes a total penalty of ₹3 crore on 3 PSU banks

RBI said on Friday that it has imposed a penalty of 1 crore each on the three banks of Union Bank of India (UBI), Bank of India and Bank of Maharashtra

Mumbai: The Reserve Bank has imposed a total penalty of 3 crore on three state-run banks of Union Bank of India, Bank of India and Bank of Maharashtra for delay in detection and reporting of fraud in some accounts.

The central bank in three separate releases Friday said it has imposed a penalty of 1 crore each on the three banks of Union Bank of India (UBI), Bank of India and Bank of Maharashtra.

The RBI on 30 August “imposed a monetary penalty of 10 million" on the banks for contravention of the instructions contained in Master Circular on Fraud – Classification and Reporting issued by RBI, according to the releases.

The penalty has been imposed taking into account delay on the part of the bank to detect and report fraud in an account, it said.

“This is to inform that Reserve Bank has imposed a penalty of 10 million on the bank for delay in detection and reporting of fraud. The penalty has been imposed in exercise of powers vested in RBI under ...Banking Regulation Act," Union Bank of India said in a regulatory filing Friday.

The bank has taken necessary preventive measures and has implemented a comprehensive corrective action plan to strengthen internal controls and to ensure that such incidents do not recur, the bank added.

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