Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.12 crore on Bank of Maharashtra by order dated April 18, 2022. RBI said the bank had not complied with certain directions relating to KYC, creation of a central repository of large common exposures / CRILC reporting, and guidelines on managing risks and code of conduct in outsourcing of financial services. The identified lapses included failure to allot UCICs to individual customers, failure to ensure integrity and quality of data submitted to RBI in CRILC, and failure to enter into an SLA and review an outsourcing arrangement for one outsourced financial service. RBI clarified that the action was based on deficiencies in regulatory compliance and was not intended to pronounce on the validity of customer transactions or agreements.