Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50 lakh on the Federal Bank for violation of Section 46 (4) (i) of Banking Regulation Act, 1949 for not submitting flash report for frauds involving Rs 50 lakh, within a week of such frauds coming to the notice of the same. The regulator has vide their order dated July 31, 2019 received by the Bank on August 02, 2019.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A (I) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.
