Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹2 crore on Bank of Maharashtra by order dated February 25, 2021. RBI said the bank had failed to comply with certain provisions of its directions on fraud classification and reporting, concurrent audit system guidelines, disclosure of customer complaints and unreconciled ATM transaction balances, and MSME sector restructuring of advances. The action followed statutory inspection findings and risk assessment reports for the bank's financial positions as on March 31, 2018 and March 31, 2019, along with show-cause proceedings and a personal hearing. RBI stated that the penalty was for regulatory non-compliance and did not pronounce on the validity of any customer transaction.