The Reserve bank of India has slapped PSU banks with a combined penalty of Rs. 11 crore due to non compliance of six distinct norms that are to be met both at the time of opening as well as monitoring of new accounts and reporting of funds on balance sheet, said the RBI statement released on Friday.
Bank of Baroda, Indian Overseas Bank and Union Bank of India have been imposed a fine of Rs. 1.5 crore each, others such as Allahabad Bank and Bank of Maharashtra with Rs. 2 crore each and Rs 1 crore fine on Oriental Bank of Commerce.
"Based on the findings of the scrutiny, notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions."said RBI in the statement. The non compliance is in the areas such as
"Code of Conduct for Opening and Operating Current Accounts", "Opening of Current Accounts by Banks - Need for Discipline", "Discounting/ Rediscounting of Bills by Banks", "Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016", "End Use of Funds - Monitoring" and "Deposits on Balance Sheet Date, the central bank said.
In another instance, Corporation Bank has also been fined by the apex banking authority for Rs. 1 crore due to non compliance in the area of cybersecurity.