The bank also recovered SMS alert charges from its customers on a flat basis rather than on an actual usage basis.
The Reserve Bank of India(RBI) has imposed a fine of Rs 84.5 lakh on Central Bank of India for non-compliance with fraud-classification norms.
A statutory inspection for supervisory evaluation of the bank was conducted by the RBI and it showed that the bank had failed to report certain accounts as fraud within seven days of the decision of the joint lenders’ forum (JLF) to declare those as fraud.
The bank also recovered SMS alert charges from its customers on a flat basis rather than on an actual usage basis.
“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein,” the central bank said in a press release.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, the release said.
