The Reserve Bank of India (RBI) on Friday said that it has imposed a fine of Rs 1.27 crore on Bank of Maharashtra (BoM) for violating its instructions, including its KYC. The central bank said in a statement that the Reserve Bank of India (RBI) by an order dated August 8, 2024 has imposed a monetary penalty of Rs 1.27 crore on Bank of Maharashtra for non-compliance of certain instructions issued by the RBI on ‘Credit System for Bank Credit Delivery’, ‘Cyber Security Framework in Banks’ and ‘Know Your Customer’.
After considering the bank’s response to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, the RBI found that the allegations against the bank are correct, due to which it was appropriate to impose a monetary penalty.
RBI also imposed fines on these
- Apart from this, Hinduja Leyland Finance Limited has been fined Rs 4.90 lakh for non-compliance of certain provisions of the KYC Guidelines, 2016.
- While Poonawalla Fincorp Limited has been fined Rs 10 lakh. According to the statement, this action has been taken due to lack of regulatory compliance, and it is not related to the validity of any transaction with customers.
All allegations are correct
After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found that the following allegations were sustained against the company, for which imposition of monetary penalty was justified, RBI said in a statement.
The company charged interest on loans from dates prior to the disbursement of these loans, which was contrary to the terms of the loan told to the customers.
