Reserve Bank of India imposes monetary penalty on Bank of Maharashtra
Case Brief
On August 30, 2018, the Reserve Bank of India imposed a monetary penalty of Rs 10 million on Bank of Maharashtra. The penalty was issued for contravention of RBI’s Master Circular on Fraud – Classification and Reporting, specifically due to delay by the bank in detecting and reporting a fraud in an account. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The bank was found to have delayed detection and reporting of a fraud in an account, contrary to the instructions contained in RBI’s Master Circular on Fraud – Classification and Reporting.
Severity Assessment
A Rs 10 million penalty falls in severity band 3 under the monetary scale, with no additional structural restriction involved.
The bank must bear the penalty and the finding highlights deficiencies in fraud detection and reporting controls. The action has no stated operational restriction, but it signals heightened regulatory scrutiny over the bank’s fraud monitoring and reporting processes.
Published as Bank of Maharashtra
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
Bank of Maharashtra
Monetary penalty · Fresh imposition
Bank of Maharashtra
Monetary penalty · Fresh imposition
Bank of Maharashtra
Monetary penalty · Fresh imposition
Bank of Maharashtra
Monetary penalty · Fresh imposition
Bank of Maharashtra
Monetary penalty · Fresh imposition
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