Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 20 million on Bank of Maharashtra, one of the leading public sector banks in India, for non-compliance with certain direction on fraud classification and reporting.
This penalty has been imposed in exercise of powers vested in the RBI under the Banking Regulation Act, 1949.
The bank also violated the RBI directions on Concurrent Audit System in Commercial Banks, disclosure of customer complaints and unreconciled balances on account of ATM transactions, and Micro, Small and Medium Enterprises (MSME) Sector - Restructuring of Advances.
Shares of the bank declined Rs 0.2, or 0.86%, to settle at Rs 23.05. The total volume of shares traded was 1,187,834 at the BSE (Tuesday).
