Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50 lakh on Central Bank of India by order dated November 10, 2020. RBI said the bank had not complied with certain provisions of its directions contained in the circular on “Housing Sector- Innovative Housing Loan Products – Upfront disbursal of housing loans” dated September 3, 2013. The action followed an off-site examination of records relating to some housing loans, issuance of a show-cause notice, and consideration of the bank’s reply and oral submissions. RBI concluded that the non-compliance was substantiated and warranted penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 50.0 L
- Entity Type
- Bank
- Action Type
- Monetary penalty