InvestorQ : Why has RBI imposed a penalty of Rs.2 crore on Bank of Maharashtra?
Dhwani Mehta made post

Why has RBI imposed a penalty of Rs.2 crore on Bank of Maharashtra?

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Dilmini Mercia answered.
4 months ago
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RBI has imposed a penalty of Rs.2 crore on the Bank of Maharashtra for non-compliance with certain specific provisions pertaining to directions issued by the RBI Interest Rate on Deposits Directions, 2016. Under the provisions of the Banking Regulation Act, 1949, the RBI is authorized to impose such penalties from time to time where there is a clear and flagrant case of violation of extant rules.

As is the norm, the RBI as a first step had issued a notice to the bank advising them to show cause as to why penalty should not be imposed for non-compliance with the directions. The reply given by the Bank of Maharashtra was not very convincing and therefore only after considering the bank’s reply to the notice, oral submissions and examination of additional submissions, the penalty of Rs.2 crore was imposed on BOM.

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