Mumbai: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on Bank of Maharashtra.
The fine was imposed by an order dated January 04, 2019 for non-compliance with Master Directions on Frauds-Classification and Reporting dated July 1, 2016 and Master Direction on Know Your Customer dated February 25, 2016 issued by RBI, said an RBI release.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949 taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.