The Reserve Bank of India has imposed a monetary penalty of ₹4 crore on Bank of India and of ₹2 crore on Punjab National Bank.
The statutory Inspection for Supervisory Evaluation (lSE) of Bank of India was conducted by RBI with reference to its financial position as on March 31, 2019, the RBI said.
The bank 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 on the ISE and the FMR revealed non-compliance with or contravention of the directions including breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting a fraud to RBI and sale of a fraudulent asset, it said.
Penalty on PNB
Meanwhile, the monetary penalty on Punjab National Bank was imposed for non-compliance of certain provisions of directions issued by RBI contained in the Master Directions on ‘Frauds – Classification and Reporting by commercial banks and select FIs’ dated July 1, 2016 and the circular on ‘Creation of a Central Repository of Large Common Exposures – Across Bank’ dated September 11, 2013, the RBI said in a separate statement.