The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of ₹ 36 lakh on the Central Bank of India (CBI) for non-compliance with certain regulatory directions.
Central Bank of India has been penalised because of non-compliance with certain directions issued by the RBI on ‘Customer Protection-Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’. The RBI issued the penalty order on 18th April 2022.
“Upon an evaluation of the bank by RBI, non compliance was found with the aforesaid directions to the extent that 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,” the central bank said.
Accordingly, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions, as stated therein.
“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,” the RBI said in a statement.
