RBI slaps penalty on Central Bank of India; do customers need to worry?
Zee News
The Central Bank of India allegedly limited the liability of customers in unauthorised electronic banking transactions.
New Delhi: The Reserve Bank of India, on Friday (April 22), said that the regulator has slapped a fine of Rs 36 lakh on the Central Bank of India for violating norms on customer protection. In an official notification dated April 18, 2022, the RBI said it imposed a monetary penalty of Rs 36 lakh on the public sector bank for non-compliance with certain directions on 'Customer Protection’.
According to the RBI notification, the Central Bank of India limited the liability of customers in unauthorised electronic banking transactions. The regulator pointed out that the penalty has been imposed under the provisions of the Banking Regulation Act, 1949.
"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI said.
It was also mentioned in the notification that RBI had conducted a statutory inspection for supervisory evaluation of the bank with reference to its financial position as of March 31, 2020.
The regulator also revealed the non-compliance with the relevant directions to the extent the bank failed to credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer, it said.
