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  Business   Economy  03 Oct 2018  Federal Bank fined Rs 5 crore for non-compliance of RBI norms

Federal Bank fined Rs 5 crore for non-compliance of RBI norms

PTI
Published : Oct 3, 2018, 7:24 pm IST
Updated : Oct 3, 2018, 7:24 pm IST

The lender was found to have not complied with RBI directions on reporting of data on CRILC.

South-based Federal Bank has been penalised Rs 5 crore for non-compliance on reporting of large borrower exposures and non-payment of customer compensations, among other deficiencies, the Reserve Bank said on Wednesday.
 South-based Federal Bank has been penalised Rs 5 crore for non-compliance on reporting of large borrower exposures and non-payment of customer compensations, among other deficiencies, the Reserve Bank said on Wednesday.

Mumbai: South-based Federal Bank has been penalised Rs 5 crore for non-compliance on reporting of large borrower exposures and non-payment of customer compensations, among other deficiencies, the Reserve Bank said on Wednesday.

The lender was found to have not complied with RBI directions on reporting of data on Central Repository of Information on Large Credits (CRILC) and reporting to RBI for assessment under risk-based supervision,an RBI statement said. It was also found to have not paid compensation for delay in resolution of ATM (automated teller machine)-related customer complaints, the central bank said.

Another shortcoming found with the bank relates to non-compliance with following know your customer and anti-money laundering norms, it said. "This action is based on 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 clarified.

Tags: federal bank, reserve bank of india, rbi norms, penalty
Location: India, Maharashtra, Mumbai (Bombay)