The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.45 crore on the Central Bank of India for non-compliance with certain directions related to 'loans and advances' and 'customer protection'. The RBI had conducted a statutory inspection for Supervisory Evaluation (ISE 2022) of the Central Bank of India with reference to its financial position as of March 31, 2022.
A notice was issued to the bank, advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the directions. After considering the bank's response, the RBI found that charges against the bank were sustained. The bank sanctioned a working capital demand loan to a Corporation against amounts receivable from the government by way of subsidies.
It also failed to credit (shadow reversal) the amount involved in a few instances of unauthorised electronic transactions to the customer's account within the stipulated time.
Central Bank of India is a commercial bank. The bank’s segments include Treasury Operations, Corporate/Wholesale Banking, Retail Banking and other Banking business.
