Reserve Bank of India fined four major banks in India for non-reporting of fraud activities. RBI has imposed a fine of Rs 1.5 crore on Oriental Bank of Commerce for the delay in reporting fraud in the Kingfisher Airlines account
“This is to inform that the RBl in the exercise of powers conferred under various sections of the Banking Regulation Act, 1949 has imposed an aggregate penalty of Rs 1.5 crore on the bank for failure to classify and report the account of Kingfisher Airlines Limited as fraud,” said the state-owned lender in a regulatory filing.
“The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order,” it added.
The RBI also fined Punjab National Bank, Bank of Baroda and the State Bank of India Rs 50 lakh each for non-compliance relating to reporting of frauds, reported Business Standard.
“RBI observed from the fraud monitoring report-1 submitted by Punjab National Bank on July 10, 2018, that the bank had delayed the reporting of fraud in the account of Kingfisher Airlines Limited,” PNB said in a regulatory filing.