Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1,27,20,000 on Bank of Maharashtra by order dated August 8, 2024. The penalty followed supervisory inspections and related proceedings in which RBI found non-compliance with directions on 'Loan System for Delivery of Bank Credit', 'Cyber Security Framework in Banks', and 'Know Your Customer'. RBI said the bank failed to maintain the prescribed minimum loan component for certain borrowers, did not implement fraud risk management across all delivery channels, issued multiple customer identification codes instead of a UCIC for some customers, and permitted operations in certain small accounts that did not meet regulatory requirements. The penalty was imposed under the Banking Regulation Act, 1949.