Reserve Bank of India fines Sonali Bank 96 lakh rupees

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The Reserve Bank of India (RBI) has fined Rs 96 lakh 4 thousand on Sonali Bank of Bangladesh and Rs 1 crore 45 lakh on India's Central Bank of India for violating the rules and guidelines of transactions. The penalty was imposed after a regular monitoring from March 31, 2022.

In a press release, Reserve Bank of India has informed the Central Bank of India about the fines imposed on two banks in Bangladesh and India, the Hindustan Times reported.

According to the notification, the Reserve Bank of India has fined 9.64 million rupees on Sonali Bank PLC and 1 crore 45 million rupees on Central Bank of India due to violation of loan, advance and KYC rules.

According to a report in the country's media Hindustan Times, the Central Bank of India has approved a working capital demand loan to a corporation against the amount recoverable from the government through subsidy. The government bank has been fined heavily for approving this loan in violation of the rules.

In a notification, RBI said, Sonali Bank Plc has been fined Rs 96 lakh 40 thousand for violating KYC guidelines and other norms. The Indian arm of Sonali Bank plc is a part of Sonali Bank of Bangladesh.

The RBI said that the penalty has been imposed for violating certain norms. However, in this case, any transactions or contracts of banks and customers will not be affected. At the same time, no other action will be taken against the bank except fine.

RBI has fined the Central Bank of India for failing to return the money withdrawn from customers' accounts on time due to fraud. The central bank of India said the country's state-owned bank was involved in unauthorized e-transactions.

Incidentally, the RBI conducted a statutory inspection for supervisory assessment of the financial condition of the Central Bank of India as on March 31, 2022. After that, the RBI took such strict action against the bank for the first time, the report said.