RBI levies Rs. 11 cr fine on 7 banks

The RBI has levied a collective penalty of Rs. 11 crore on seven public sector banks in the pretext of violating norms on current account opening.

While Allahabad Bank and Bank of Maharashtra have been imposed a fine of Rs. 2 crore each, Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of India have been levied with fines of Rs. 1.5 crore each. Oriental Bank of Commerce has been imposed with a penalty of Rs. 1 crore.

“The Reserve Bank of India (RBI) has, by an order dated July 31, 2019, imposed monetary penalty on seven banks for non-compliance with certain provisions of directions issued by RBI on ‘Code of Conduct for Opening and Operating Current Accounts’,” RBI said in a release.