RBI aka Reserve Bank of India reportedly imposes a fine of around 50 lakh on a significant state bank in the country. RBI imposed a massive amount of penalty on Punjab National Bank on Saturday. RBI said that the fine is the result of an expected delay to report a fraudulent account.
According to sources, Kingfisher Airlines is the sole account holder of the fraudulent account. During a recent regulatory filing, the Punjab National Bank said that the Reserve Bank of India did observe the monitoring of the fraud, namely report-1. It was Punjab National Bank which came up with the monitoring report on the 10th of July 2018.
PNB did delay in reporting about the fraud account
Given that PNB report RBI about the fraudulent account, RBI said that PNB took a lot of time to put the report forward. RBI has complete control over the state banks and private banks in India. On the other hand, it is the perfect job of RBI to regulate and observe the fraudulent activity among different financial institutions.
RBI brought the Banking Regulation Act of the year 1949 forward and said PNB that they are accountable for not informing about the fraudulent account. Now, PNB has to give a penalty of around 50 lakh to the Indian Reserve Bank.
Bank of Baroda is also going through the same phase
Another Indian Multinational Bank for the public sector, the Bank of Baroda came up with a separate filing. The RBI also said that BoB has to give a fine of around Rs 50 lakh as the bank delay to report a fraudulent account.
On Friday, Reserve Bank of India said that it would impose a penalty of around Rs 11 crore on seven distinctive public sector banks. According to RBI, these banks are accountable for violating the code of conduct concerning the opening of the current account. Bank of Maharashtra and Allahabad Bank have also to give a fine of around two crores, separately.