Penalty on Overseas Bank: RBI imposes a fine of Rs 57.5 lakh on state-owned bank IOB
Before this penalty, RBI had inspected the supervisory valuation of the financial position of indian Overseas bank as of march 31, 2020. This included risk assessment reports, inspection reports,s, and related things.
The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) has tightened the public sector bank indian Overseas Bank. The central bank has imposed a fine of Rs 57.5 lakh on indian Overseas Bank. It has been told by RBI on friday that this action has been taken in case of non-compliance with certain norms and rules related to fraud by the central bank.
According to PTI news, it has been said by the RBI that this action has been taken on the public sector bank based on the statutory inspection of the bank and examination of the reports concerning its financial position at the end of march 2020.
According to the report, the information provided by the central bank states that within three weeks from the date of detection, IOB had failed to report certain cases of fraud related to ATM card cloning/skimming. The penalty was linked to the directions issued by the RBI on fraud categorization and reporting of commercial banks and select financial institutions.
It has also been said by the central bank that this action has nothing to do with the validity of any transaction or agreement entered into with customers. Before this penalty, RBI had inspected the supervisory valuation of the financial position of indian Overseas bank as of march 31, 2020. This included risk assessment reports, inspection reports, and related things.
