RBI imposes monetary penalty of Rs 1.12 crore on Bank of Maharashtra for non-compliance

The Reserve Bank of India on April 25 said it has imposed a monetary penalty of Rs 1.12 crore on the state-run Bank of Maharashtra for non-compliance.

The non-compliance pertains to certain directions issued under the Know Your Customer (KYC) Directions, of 2016, the banking regulator said in a release. This penalty has been imposed in the exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949 (the Act).

The examination of the Risk Assessment Report & Inspection Report pertaining to the Statutory Inspection for Supervisory Evaluation (ISE), scrutiny reports, and all the correspondence related to the same, revealed, inter-alia, non-compliance related to failure to allot Unique Customer Identification Codes (UCIC) to its individual customers, failure to ensure integrity and quality of data submitted to RBI in CRILC, the RBI said. The bank also did not enter into any Service Level Agreement (SLA) and failed to review the outsourcing arrangement for one of the outsourced financial services.

The RBI’s 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.