RBI imposes Rs 84.5 lakh penalty on Central Bank of India for non-compliance

New Delhi: In a regulatory filing on Friday, the state-owned Central Bank of India informed the exchanges that the Reserve Bank of India (RBI) has imposed Rs 84.5 lakhs for non-compliance with the provisions of directions issued by the RBI in the exercise of its powers vested under section 47A(1)(c) read with section 46(4)(i) and Section 51(1) of the Banking Regulation Act, 1949. The penalty was communicated through an official communication from the RBI on May 26. RBI also issued an order on May 25 regarding the same, the filing added.

Section 47A(1)(c)

This section empowers the RBI to issue directions to banks in matters related to banking policy, regulation, and supervision. It allows the RBI to prescribe guidelines and regulations for banks to ensure compliance with regulatory requirements and maintain the stability of the banking sector.

Section 46(4)(i)

This section grants the RBI the authority to impose penalties on banks for contravening or non-compliance with the provisions of the Banking Regulation Act or the RBI's directions. It empowers the RBI to take appropriate action when banks fail to adhere to the regulatory framework or violate prescribed guidelines.

Section 51(1)

This section outlines the penalties that can be imposed by the RBI for non-compliance with the provisions of the Banking Regulation Act or the RBI's directions. It provides the legal basis for the RBI to levy monetary penalties on banks as a means to enforce compliance and maintain discipline within the banking industry.

By invoking these sections, the RBI is utilising its statutory powers to enforce regulatory compliance, maintain the integrity of the banking system, and ensure that banks fulfill their obligations in accordance with the provisions of the Banking Regulation Act and the RBI's directives.

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