Case Brief
What Happened
By an order dated May 25, 2023, RBI imposed a monetary penalty of ₹84.50 lakh on Central Bank of India. The penalty was levied for non-compliance with RBI’s directions on fraud classification and reporting and the Master Circular on Customer Service in Banks, after inspection revealed that the bank failed to report certain accounts as fraud within seven days of the JLF’s decision and recovered SMS alert charges on a flat basis instead of actual usage basis. RBI stated that the action was based on deficiencies in regulatory compliance and not meant to pronounce upon the validity of any transaction or agreement with customers.