Allahabad Bank, Corp Bank Fined Rs 3.5Cr By RBI

New Delhi: The Reserve Bank of India has imposed a cumulative penalty of Rs 3.5 crore on state-owned Corporation Bank and Allahabad Bank for violation of various norms.

“This is to inform that Reserve Bank of India…has imposed an aggregate penalty of Rs 20 million on our bank due to some lapses in monitoring of end-use of funds and exchange of information with other banks in respect of one borrower along with some other banks,” Corporation Bank said in a regulatory filing on Friday.

On the other hand, Allahabad Bank has been fined Rs 1.5 crore by the RBI for not monitoring end use of funds, among other violations.

“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 bank said in a regulatory filing.

Allahabad Bank officials said the amount of penalty is not material considering the size of the bank.

Earlier, the RBI had imposed penalties on Axis Bank, UCO Bank and Syndicate Bank for violation of various norms.

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