Case Brief
What Happened
By an order dated June 11, 2024, RBI imposed a monetary penalty of Rs 1,45,50,000 on Central Bank of India under the Banking Regulation Act, 1949. The penalty was based on supervisory findings from the bank’s inspection for the year ended March 31, 2022, which identified violations of RBI directions relating to loans and advances and to limiting customer liability in unauthorised electronic banking transactions. RBI noted, among other things, that the bank sanctioned a working capital demand loan against subsidies receivable from the Government and, in certain cases, did not promptly reverse unauthorised electronic transaction amounts, resolve complaints, or pay compensation within the prescribed timelines.