In both cases, notices were issued to banks to show cause as to why penalties should not be imposed on them for such violations of the directions.
The Reserve Bank of India (RBI) on Monday slapped a Rs 4 crore fine on Bank Of India and Rs 2 crore on Punjab National Bank (PNB) for non-compliance of norms, including one related to “Frauds – Classification and Reporting”.
In a statement, the RBI said the statutory Inspection for Supervisory Evaluation (lSE) of Bank of India was conducted with reference to its financial position as on March 31, 2019. The RBI had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated January 1, 2019, pertaining to detection of fraud in an account.
Examination of the risk assessment report pertaining to the ISE and the FMR revealed non-compliance with/contravention of directions, viz., breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting fraud to RBI and sale of a fraudulent asset, the statement said.
In a separate statement, the RBI said the statutory ISE of Punjab National Bank was conducted with reference to its financial position as on March 31, 2018 (ISE 2018) and March 31, 2019 (ISE 2019).
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The examination of the risk assessment reports pertaining to ISE 2018 and 2019 revealed non-compliance with/contravention of the aforesaid directions, viz., delay in reporting of frauds and not ensuring data accuracy and integrity while submitting data on CRILC platform/ to RBI, it said.
In both cases, notices were issued to banks to show cause as to why penalties should not be imposed on them for such violations of the directions.
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