RBI fines 3 PSU banks Rs.1 crore each

Reserve Bank of India has imposed an Rs 1 crore penalty each on Union Bank of India, Bank of India and Bank of Maharashtra for failing to detect and report fraud on time.

The penalty was imposed “for contravention of instructions contained in Master Circular on Fraud – Classification and Reporting issued by RBI”, taking into account delay on the part of the banks to detect and report fraud, the RBI said.

“This is to inform that the Reserve Bank advised the bank to pay a penalty of Rs one crore on account of ‘violation of RBI guidelines on Frauds- Classification and Reporting’ in the accounts of Winsome Diamond and Jewellery Ltd and Forever Precious Diamond and Jewellery Ltd. The penalty is required to be paid within 14 days of receipt of this order,” RBI said.