Reserve Bank of India (RBI) has imposed a penalty of Rs 84.50 lakh on Central Bank of India for non-compliance with certain provisions of norms related to frauds classification and reporting. The Reserve Bank had conducted statutory inspection for supervisory evaluation of the bank with reference to its financial position as on March 31, 2021.
Examination of the reports revealed that the public sector lender had failed to report as fraud to RBI certain accounts within seven days of decision of Joint Lenders' Forum (JLF) to declare the accounts as fraud. It had recovered SMS alert charges from its customers on flat basis rather than on actual usage basis. The RBI had issued a notice to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions.
Central Bank of India is an Indian public sector bank based in Mumbai.
