The RBI, Reserve Bank of India announced on April 25 that the state-run Bank of Maharashtra has been fined Rs 1.12 crore for non-compliance.
According to the banking regulator, the non-compliance is related to various instructions received there under the Know Your Customers (KYC) Guidelines of 2016. This punishment was issued in the execution of RBI’s authority under section 47 A (1) (c) of the Banking Regulation Act, 1949, read with sections 46 (4) I and 51 (1) of the Banking Regulation Act, 1949. (the Act).
What RBI Said?
The RBI said that the investigation of the Risk Assessment Summary & Safety checks Report relating to the Statutory Checking for Supervisory Evaluation (ISE), inquiry reports, and all linked communications disclosed non-compliance related to the failure to assign Distinctive Customer Unique Identifiers (UCIC) to individual consumers, as well as the inability to maintain the authenticity and quality of the information forwarded to RBI in CRILC. The bank also neglected to examine the contracting agreement for one of the contracted payment institutions and won’t enter into another Service Level Agreement ( SLA (SLAs).
The Compliance Requirements
The RBI’s behaviour is based on compliance requirements issues and is not meant to be a judgement on the legitimacy of any business or arrangement between the institution and its clients.
In a separate statement, the RBI said it has levied a financial penalty of Rs 25 lakhs on Haryana State Co-operative Apex Ltd. for failing to comply with its mortgage lending directives. It has also fined Rajkot Nagarik Sahakari Bank Ltd Rs 12 lakh for non-compliance with the ‘Rate Of interest on Reserves.’
