Mumbai: The Reserve Bank of India (RBI) has imposed separate monetary penalties on lenders — UCO Bank, Axis Bank and Syndicate Bank — over deficiencies in complying with different regulatory norms.
The RBI imposed a penalty of Rs 2 crore each on UCO Bank and Axis Bank for non-compliance with its circular on ‘Collection of Account Payee Cheques – Prohibition on Crediting Proceeds to Third Party Account’ and Master Directions on ‘Frauds – Classification and Reporting by commercial banks and select FIs’.
In addition, a separate penalty of Rs 20 lakh was imposed on Axis Bank for contravention of the directions contained in ‘Master Circular on Detection and Impounding of Counterfeit Notes’ and, the ‘Circular on Sorting of Notes – Installation of Note Sorting Machines’.
In another statement, the RBI said it has imposed a penalty of Rs 1 crore on the government-owned Syndicate Bank for non-compliance with the directions contained in ‘Master Circular on Frauds – Classification and Reporting’ and ‘Circular on Risk Management Systems in Banks’.
IANS