Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 4.00 crore on Bank of India by order dated June 07, 2021. RBI said the penalty was for non-compliance with directions covering KYC/AML/CFT obligations, Depositor Education and Awareness Fund operational guidelines, fraud classification and reporting, and reporting requirements for sale of doubtful/fraudulent assets. The supervisory examination found breach of stipulated transaction limits, delay in transferring unclaimed balances to the DEA Fund, delay in reporting a fraud to RBI, and sale of a fraudulent asset. RBI concluded the contraventions were substantiated and warranted penalty under the Banking Regulation Act, 1949.