RBI Slaps ₹2-cr Fine On Axis Bank AndUCO Bank; ₹1 Cr On Syndicate Bank

The RBI has imposed a monetary penalty of ₹2 crore each on UCO Bank and Axis Bank, and ₹1 crore on Syndicate Bank.

In the case of UCO and Axis Bank, the penalty has been imposed for non-compliance with the 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’, the central bank said in a statement.

In the case of Syndicate Bank, the penalty has been imposed for non-compliance with the directions contained in Master Circular on Frauds - Classification and Reporting and Circular on Risk Management Systems in Banks, it added.

Further, in the case of Axis Bank, the RBI has imposed a monetary penalty of ₹20 lakh 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 the case of the three above-mentioned banks, the RBI said: “This penalty has been imposed in exercise of powers vested in the RBI under the provisions...of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by the central bank.”