RBI levies Rs. 2 crore penalty on Bank of Maharashtra for non-compliance

RBI has imposed a monetary penalty of Rs. 2 crore on the state-owned Bank of Maharashtra for contravention of non-compliance with certain provisions of the directions contained in the Central Bank’s frauds classification. The penalty was imposed in order to exercise the powers vested in RBI under the provisions of section 47 A (1) (c) with sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949.

RBI declared in a formal statement, “The statutory inspection of the bank with reference to its financial position as on March 31, 2018, and March 31, 2019, and the Risk Assessment Reports (RARs) pertaining thereto revealed, inter alia, non-compliance with the aforesaid directions issued by RBI. In furtherance to the same, notices were issued to the bank advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI”.