Authorities Holding Public Auctions Must Disclose All Known Encumbrances and Related Litigation  ||  SC: Compensatory Allowances Must Be Included While Computing Overtime Wages U/S 59 of Factories Act  ||  SC: NGT Has No Jurisdiction to Decide Disputes Relating to Building Plan Violations  ||  SC: Evidence is Often Fabricated Using AI And False Allegations are Rampant in Matrimonial Cases  ||  SC: While Declining to Quash an FIR, A High Court Should Not Direct Police To Follow Section 41A CrPC  ||  Allahabad High Court: Recruitment Rules Cannot Override Compassionate Appointments  ||  Rajasthan HC: Single Blunt Blow Causing Grievous Injury is Not Attempt to Murder Without Intent  ||  Karnataka High Court Holds Mining Leases Granted in Violation of Rule 22-D are Void Ab Initio  ||  Supreme Court: Wait-Listed Candidates Have No Vested Right After List Expiry  ||  SC: Reserved Candidates Scoring Above General Cut-Off Must be Considered For Open Posts    

Reserve Bank of India imposes monetary penalty on Central Bank of India- (Reserve Bank of India) (10 Nov 2020)

MANU/RPRL/0165/2020

Banking

Reserve Bank of India (RBI) has, by an order dated November 10, 2020, imposed a monetary penalty of Rs. 50 lakh (Rupees Fifty lakh only) on Central Bank of India (the bank) for non-compliance with certain provisions of directions issued by RBI contained in the circular on "Housing Sector- Innovative Housing Loan Products - Upfront disbursal of housing loans" dated September 3, 2013.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

An off-site examination of the records pertaining to some housing loans disbursed by the bank was conducted by RBI. The examination and related documents revealed non-compliance with the abovementioned directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions. After considering the bank's reply to the notice, oral submissions made in the personal hearings and examination of additional submissions, RBI concluded that the charges of non-compliance with the aforesaid directions were substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   CENTRAL BANK  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved