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.
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)
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Feb 08, 2019 18:34:04 IST
