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A statutory inspection for supervisory analysis of the financial institution was performed by the RBI and it confirmed that the financial institution had didn’t report sure accounts as fraud inside seven days of the choice of the joint lenders’ discussion board (JLF) to declare these as fraud.
The financial institution additionally recovered SMS alert fees from its prospects on a flat foundation slightly than on an precise utilization foundation.
“In furtherance to the identical, a discover was issued to the financial institution advising it to point out trigger as to why penalty shouldn’t be imposed on it for failure to adjust to the mentioned instructions, as acknowledged therein,” the central financial institution mentioned in a press launch.
After contemplating the financial institution’s reply to the discover and oral submissions made in the course of the private listening to, the RBI got here to the conclusion that the cost of non-compliance with the aforesaid RBI instructions was substantiated and warranted imposition of financial penalty, the discharge mentioned.
