RBI imposed a fine of Rs 1.12 crore on Bank of Maharashtra, what is the whole matter?

The Reserve Bank of India has imposed a penalty of Rs 1.12 crore on Bank of Maharashtra for default in compliance with Know Your Customer (KYC) and other instructions. The central bank said in a statement that this penalty has been imposed on Bank of Maharashtra for violation of risk management guidelines, provisions related to KYC and code in outsourcing of financial services by banks.

According to the statement, the Statutory Inspection and Monitoring Assessment (ISE) of the bank was carried out in line with the financial position as on March 31, 2020. Apart from this, investigation was also done by the bank for not putting the customs duty in the account of the government. In another statement, the central bank said that a fine of Rs 12 lakh has also been imposed on Rajkot Nagrik Sahakari Bank, Rajkot for non-compliance of interest rate instructions on deposits.

A few days ago, the Central Bank of India Bank was also fined
A few days ago, the Reserve Bank of India also imposed a fine on the Central Bank of India. A fine of Rs 36 lakh has been imposed on this public sector bank for violating the rules related to the interest of customers.

While issuing a statement in this regard, RBI said that this action taken on Central Bank of India has been done due to lack of regulatory compliance. The central bank said that on the basis of the reply filed by the bank, action has been taken against it.

Action was taken on these banks in the past
Earlier, the Reserve Bank of India had taken major action against three co-operative banks for disobeying the rules. RBI imposed a total fine of five lakhs on these banks. The banks on which the penalty action has been taken include Yashwant Co-Operative Bank Ltd., Kokan Mercantile Co-operative Bank Ltd., Samta Co-operative Development Bank Ltd. based in Phaltan. According to the statement issued by the central bank, RBI has taken action against these banks for non-compliance.