For a host of violations, RBI has levied penalties on State Bank of India and eight commercial banks, including, Punjab National Bank and Bank of Baroda. Mainly, the delay on the reporting of fraud in the account of Kingfisher Airlines was the reason behind the penalization.
While, SBI and PNB in regulatory filings said that the RBI has imposed a penalty of Rs 50 lakh on them for delay in reporting of fraud in the account of Kingfisher Airlines, Oriental Bank of Commerce said that the RBI has imposed a fine of Rs 1.5 crore on it for the same.
United Bank of India and Punjab & Sind Bank said they have been fined 1 crore each by the RBI. Meanwhile, Bank of Baroda and Federal Bank reported a fine of Rs 50 lakh each on them for delay in reporting fraud in an account.