Reserve Bank of India fines three banks for compliance fails
The sums aren’t huge but the Reserve Bank of India (RBI) has fined three banks for “deficiencies in regulatory compliance”.
Axis Bank, third largest of the private-sector banks in the country, was hit with two separate fines of INR 2 million ($28,000) and INR 20 million ($280,000).
Four fines, three banks
For the first, Axis was in contravention of RBI’s directions concerning the detection and impounding of counterfeit notes; and for the sorting of notes and installation of note sorting machines.
The second fine was for non-compliance with the collection of account payee cheques; and due to the prohibition on crediting proceeds to third party accounts.
UCO Bank was fined INR 20 million ($280,000) for the same reasons as Axis’ second fine. The bank, formerly United Commercial Bank, is government-owned and based in Kolkata.
Syndicate Bank is another commercial bank and is in Manipal. It was fined INR 10 million ($140,000) for non-compliance concerning the classification and reporting of frauds; and its risk management systems.
The RBI doesn’t go into any more specifics about these actual issues.
In other news, last week the RBI launched its Ombudsman Scheme for Digital Transactions (OSDT), for redressal of complaints around the digital transaction services.
