Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 32.30 lakh on Canara Bank by order dated February 06, 2024. The penalty was levied for non-compliance with RBI directions relating to furnishing credit information to Credit Information Companies and to Resolution Framework 2.0 for MSMEs, individuals and small businesses, based on findings from the Statutory Inspection for Supervisory Evaluation (ISE 2022). RBI said the bank failed to rectify rejected data and upload it to CICs within seven days, and restructured certain accounts that were not standard assets as on March 31, 2021. RBI clarified that the action was based on regulatory compliance deficiencies and was not meant to pronounce on the validity of customer transactions.