RBI Imposes Penalty on Bank of Maharashtra


The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 crore on Bank of Maharashtra, in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949. 

Penalty has been held for contravention of non-compliance with certain provisions of the directions contained in RBI (Frauds classification and reporting by commercial banks and select FIs) directions 2016. 

Further, it includes contravention of the circulars on Concurrent Audit System in Commercial Banks – Revision of RBI’s Guidelines, Disclosure of customer complaints and unreconciled balances on account of ATM transactions, and MSME Sector – Restructuring of Advances.

However, this action is based on 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. 

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