Non-compliance: RBI fines Sonali Bank

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Staff Reporter :
The Reserve Bank of India (RBI) has imposed a fine of 96.4 lakh on Bangladesh’s state-owned Sonali Bank PLC for non-compliance issues.

In a press release on its website, the RBI stated that the penalty had been imposed on Sonali Bank PLC for non-compliance with certain norms, including the Know Your Customer (KYC) Directions, 2016.

“The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by the bank with its customers.

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Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank,” said the RBI.

Meanwhile, the Central Bank of India was fined ?1.45 crore for sanctioning a working capital demand loan to a corporation against amounts receivable from the Indian government by way of subsidies.

Additionally, the Central Bank of India failed to credit (shadow reversal) the amount involved in a few instances of unauthorized electronic transactions to customers’ accounts within the stipulated time, the RBI said in another press release.

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