RBI imposes upto Rs 1.5 crore fine on Oriental Bank of Commerce, SBI, BoB, PNB

Reserve Bank of India (RBI) has imposed few hefty penalties on some public sector banks for delay in reporting loan frauds. Country's largest lender, State Bank of India (SBI) on Saturday said the Reserve Bank has imposed a penalty of Rs 50 lakh on it for non-compliance relating to reporting of frauds. 

The bank said in a regulatory filling that, ''RBI in exercise of the powers conferred under various sections of the Banking Regulations Act, has imposed a penalty of Rs 50 lakh on the bank for non-compliance with its directions relating to reporting of frauds.''

RBI also imposed a penalty of Rs 50 lakh on the Punjab National Bank (PNB) for delay in reporting of fraud in the account of Kingfisher Airlines.

"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.

Similarly, RBI has imposed penalties on several public sector banks, including Bank of Baroda with a fine of Rs 50 lakh. The reason is similar, to that of delay in reporting fraud in an account.

While the highest penalty was borne by Oriental Bank of Commerce, with a fine of Rs 1.5 crore for delay in reporting fraud in the Kingfisher Airlines account.

''The aforesaid penalty is required to be paid within 14 days from the date of receipt of the RBI order'', bank said in filling.