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RBI penalises Indian Bank for violating fraud classification norms

The central bank has stepped up the scrutiny of regulated entities to ensure compliance with norms to prevent consumer interests and to protect financial stability in the banking system

August 05, 2022 / 06:39 PM IST
Representative image

Representative image

The Reserve Bank of India (RBI) on August 5 imposed a monetary penalty of Rs 32 lakh on state-run Indian Bank for non-compliance of norms related to classification of frauds.

The regulator’s statutory inspection report revealed that the bank failed to comply with guidance related to fraud classification, to the extent it furnished flash report to RBI in certain instances with delay, according to a release.

Also read: RBI penalises two co-operative banks for rule violations

The central bank has stepped up the scrutiny of regulated entities to ensure compliance with norms to prevent consumer interests and protect financial stability in the banking system.

It had on July 4 fined private lenders Kotak Mahindra Bank and IndusInd Bank for failing to adhere to loan and KYC (Know Your Customer) directives.

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Additionally, the RBI, on August 5, also imposed a monetary penalty of Rs 81.92 lakh on Bengaluru-based Jupiter Capital for violating norms related to submission of credit information to Central Repository of Information on Large Credits and submission of credit information data to Credit Information Companies, the regulator said in a separate release.

Both the actions are based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers, said the RBI.
Moneycontrol News
first published: Aug 5, 2022 06:39 pm
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