RBI imposes Rs4cr penalty on Bank of India; Stock slips ~3%

Reserve Bank of India (RBI) on Monday has imposed a penalty of Rs4cr on Bank of India for non-compliance. The Bank said that RBI has mentioned non-compliance with certain provisions of the RBI directions.

The non-compliance is with respect to “KYC norms/ AML standards/ CFT / obligation of banks under PMLA, 2002”, “The Depositor Education and Awareness Fund Scheme, 2014”, “Frauds - Classification and Reporting” and “Sale of Financial Assets of Doubtful Standard / Fraudulent Origin to Securitisation Company I Reconstruction Company, Reporting Requirements”.

The aforesaid penalty is to be paid within 14 days of receipt of the order.

“The penalty pertains to the statutory inspection of the bank with reference to its financial position as of March 31, 2019 and the Risk Assessment Reports (RARs) pertaining thereto, revealed, inter-alia, non-compliance with the above mentioned directions issued by the RBI,” Bank said.