Sonali Bank Fined Rs 96.4 Lakh for KYC Violations by Reserve Bank of India

Syed Azam

India’s central bank Reserve Bank of India (RBI) has fined Bangladesh’s Sonali Bank PLC nearly one crore rupees for violating transaction rules. Another Indian bank, Central Bank of India, has also been fined Rs 1 crore 45 lakh on the same complaint. In a press release, the Reserve Bank of India has informed about the fines imposed on two banks in Bangladesh and India.

According to the notice, Reserve Bank of India has fined 9640 thousand rupees to Sonali Bank PLC and 1 crore 45 lakh rupees to Central Bank of India for violating loan, advance and KYC rules.

According to a report in Hindustan Times, the Central Bank of India has approved a working capital demand loan to a corporation against the amount recoverable from the government through subsidy. The government bank has been fined heavily for approving these loans in violation of rules.

In a notification, RBI said, Sonali Bank Plc has been fined Rs 96 lakh 40 thousand for violating KYC guidelines and other norms. The Indian branch of Sonali Bank plc is a part of Sonali Bank of Bangladesh.

RBI said the penalty was imposed for violating certain norms. However, in this case, any transaction or contract of the bank and customers will not be affected. At the same time, no other action will be taken against the bank except fine.

On the other hand, RBI fined the Central Bank of India for failing to return money on time which withdrawn from customers’ accounts due to fraud. The central bank of India said that the country’s state-owned bank was involved in unauthorized e-transactions.

It may be noted that the RBI conducted a statutory inspection for supervisory assessment of the financial condition of the Central Bank of India as on March 31, 2022. After that, the RBI has taken such strict action against the country’s central bank for the first time.

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