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RBI fined BOI and PNB 6 crores

The Reserve Bank of India imposed an aggregate fine of Rs 6 crore on Bank of India and Punjab National Bank for violation of norms, one of which pertains to the classification and reporting of frauds. Bank of India was fined Rs 4 crore and Punjab National Bank was fined Rs 2 crore. The statutory inspection for Supervisory Valuation (LSE) of Bank of India was conducted on March 31, 2019, RBI said in a statement. The bank conducted a review and submitted a Fraud Monitoring Report (FMR) to detect fraud in an account. In a separate statement, RBI said that Punjab National Bank has been subjected to statutory inspection with reference to the financial position. The central bank said that an examination of the risk assessment report revealed that the norms were not followed in these cases. Show cause notices were sent to public sector banks in both the cases. He was asked why a penalty should not be imposed on him for not following the instructions. RBI says that both the banks have been fined for lack of regulatory compliance.