RBI fines Allahabad Bank Rs 1.5 cr for not monitoring fund use, fraud reporting delay


New Delhi: State-owned Allahabad Financial institution on Friday mentioned the RBI has imposed a penalty of Rs 1.5 crore on the lender for not monitoring finish use of funds, amongst different violations.

Representational image. Reuters.

Representational picture. Reuters.

“We have to inform you that the Reserve Bank of India…has imposed a penalty of Rs 1.5 crore on the bank for not monitoring the end use of funds, delay in classification and reporting of fraud and non-adherence with RBI guidelines during restructuring of accounts in respect of one of its borrowers,” the financial institution mentioned in a regulatory submitting.

The quantity of penalty is just not materials contemplating the scale of the financial institution, it added.

The Kolkata-headquartered lender mentioned it has taken mandatory preventive measures to strengthen inner controls to keep away from such recurrence.

Earlier this week, the regulator had imposed penalties on Axis Financial institution, UCO Financial institution, SBI and Syndicate Financial institution for violation of varied norms.

The gross penalties on these 4 lenders amounted to Rs 6.20 crore.

(With PTI inputs)

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