RBI fines Allahabad Bank Rs 1.5 cr for not monitoring fund use, fraud reporting delay

State-owned Allahabad Bank on Friday said the RBI has imposed a penalty of Rs 1.5 crore on the lender for not monitoring end use of funds, among other violations

Press Trust of India February 08, 2019 18:34:04 IST
RBI fines Allahabad Bank Rs 1.5 cr for not monitoring fund use, fraud reporting delay
  • State-owned Allahabad Bank on Friday said the RBI has imposed a penalty of Rs 1.5 crore on the lender for not monitoring end use of funds, among other violations

  • The Kolkata-headquartered lender said it has taken necessary preventive measures to strengthen internal controls to avoid such recurrence

  • Earlier this week, the regulator had imposed penalties on Axis Bank, UCO Bank, SBI and Syndicate Bank for violation of various norms

New Delhi: State-owned Allahabad Bank on Friday said the RBI has imposed a penalty of Rs 1.5 crore on the lender for not monitoring end use of funds, among other violations.

RBI fines Allahabad Bank Rs 15 cr for not monitoring fund use fraud reporting delay

Representational image. Reuters.

"We have to inform you that the Reserve Bank of India...has imposed a penalty of Rs 1.5 crore on the bank for not monitoring the end use of funds, delay in classification and reporting of fraud and non-adherence with RBI guidelines during restructuring of accounts in respect of one of its borrowers," the bank said in a regulatory filing.

The amount of penalty is not material considering the size of the bank, it added.

The Kolkata-headquartered lender said it has taken necessary preventive measures to strengthen internal controls to avoid such recurrence.

Earlier this week, the regulator had imposed penalties on Axis Bank, UCO Bank, SBI and Syndicate Bank for violation of various norms.

The gross penalties on these four lenders amounted to Rs 6.20 crore.

(With PTI inputs)

Updated Date:

also read

RBI's move to raise rates, good monsoon will help in containing inflation: CII president
Business

RBI's move to raise rates, good monsoon will help in containing inflation: CII president

CII estimates India's GDP growth to be in the band of 7.4 - 8.2 per cent, depending upon the global oil prices

RBI Governor Shaktikanta Das to make statement at 2 pm today, here's direct link to watch online
Business

RBI Governor Shaktikanta Das to make statement at 2 pm today, here's direct link to watch online

It is not clear yet on what RBI Governor Shaktikanta Das will talk about, but his statement comes in the backdrop of inflation rates in India that have soared and remained over the central bank's upper tolerance band of 6 per cent

Reserve Bank of India hikes interest rate by 40 bps to 4.40%
Business

Reserve Bank of India hikes interest rate by 40 bps to 4.40%

The decision follows an unscheduled meeting of the Monetary Policy Committee, with all six members unanimously voting for a rate hike while maintaining the accommodative stance