Case Brief
What Happened
By an order dated July 31, 2019, RBI imposed monetary penalties on seven banks — Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Indian Overseas Bank, Oriental Bank of Commerce, and Union Bank of India. The penalties were for failure to comply with RBI directions on current accounts, bill discounting/rediscounting, fraud classification and reporting, end-use of funds monitoring, and deposits on balance sheet date. RBI said the action was based on regulatory-compliance deficiencies and was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, after scrutiny, show-cause notices, and consideration of replies and submissions.