Reserve Bank of India imposes monetary penalty on Central Bank of India

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹36 lakh on Central Bank of India by order dated April 18, 2022. The penalty was for non-compliance with RBI directions on 'Customer Protection–Limiting Liability of Customers in Unauthorised Electronic Banking Transactions', after inspection found that the bank failed to credit the shadow reversal amount to a customer's account within 10 working days of notification. RBI said the action was taken under the Banking Regulation Act after considering the bank's response and submissions.