RBI imposes `36 lakh fine on Central Bank

Mumbai: Reserve Bank of India on Friday said it has imposed a fine of Rs 36 lakh on public sector lender Central Bank of India for violating norms on customer protection.

The RBI, by an order dated April 18, 2022, has imposed a monetary penalty of Rs 36 lakh on Central Bank of India for non-compliance with certain directions on 'Customer Protection - limiting liability of customers in unauthorised electronic banking transactions', RBI said in a release. This penalty has been imposed under the provisions of the Banking Regulation Act, 1949, the regulator said.

"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," it added.

RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial position at the end of FY2020. It revealed non-compliance with the relevant directions to the extent the bank failed to credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer, RBI said.