Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh on Canara Bank under Section 47A(1)(b) of the Banking Regulation Act, 1949. RBI found that the bank had been using an estimation method to reckon external liabilities under inter-branch account for calculating DTL/NDTL for CRR/SLR compliance. RBI also noted that the bank had introduced a proper reckoning system only in September 2005 and, when asked to submit revised Form A and Form VIII returns for the relevant period, could not do so due to absence of data. After issuing a show-cause notice, considering the bank's written reply, and granting a personal hearing, RBI concluded the violation was substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Bank
- Action Type