Recently, the Reserve Bank of India (RBI) has levied significant fines on three prominent financial entities. Bank of Maharashtra (BOM) has been penalized with a fine of Rs 1.27 crore for breaching multiple guidelines, including Know Your Customer (KYC) regulations, as stated by the RBI. The order, issued on August 8, 2024, mandated BOM to pay Rs. 1.27 crore as a penalty to the Central Bank. This penalty was enforced due to the institution’s failure to comply with specific RBI directives concerning the credit system for loan disbursement and the Cyber Security Framework in Banks, particularly the KYC protocols.
Additionally, the Reserve Bank has imposed fines of Rs. 4.90 lakh on another entity and a Rs. 10 lakh penalty on Poonawala Fincorp Ltd. The regulatory action was initiated based on the identified lack of adherence to regulatory standards and does not pertain to the legitimacy of any user transactions.
- Bank of Maharashtra penalty
- Cyber Security Framework
- Description: Learn about the recent fines imposed by the RBI on prominent financial entities like Bank of Maharashtra and Poonawala Fincorp Ltd. for breaching regulatory guidelines
- financial entities fines
- Keywords: RBI fines
- KYC regulations
- RBI directives
- regulatory action
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