“This fine has been imposed in the exercise of vested powers” reserve Bank of India Under the provisions of section 47A(1)(c) read with section 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, read the Central Bank Circular.
The action is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers, the RBI release read.
main charge
An inquiry was conducted by the Reserve Bank of India in a customer account maintained with the Bank and the examination of the investigation report and all related correspondence relating thereto, inter alia, revealed non-compliance of the instructions to the extent of delay in reporting. The fraud in the said account to RBI is clearly mentioned in the release of the central bank.