RBI imposes penalty of Rs 1.12 crore on Bank of Maharashtra

The bank has violated Know Your Customer (KYC) norms & guidelines on outsourcing of financial services.

On Monday, April 25, the Reserve Bank of India (RBI) imposed a penalty of Rs 1.12 crore on the Bank of Maharashtra for issues related to KYC & non-compliance with certain directions.

The bank has violated Know Your Customer (KYC) norms & guidelines on outsourcing of financial services. “The Statutory Inspection for Supervisory Evaluation (ISE) of the public sector bank was conducted with reference to its financial position as on March 31, 2020,” said the central bank in a statement.

RBI has also imposed a penalty of Rs 12 lakh on Rajkot Nagarik Sahakari Bank for not following the direction on the interest rate of deposits. A penalty of Rs 25 lakh has been imposed on The Haryana State Co-operative Apex Bank.

RBI has further stated that these penalties are only based on the report of non-compliance with the direction & will not affect the services offered to customers.

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