Fine on SBI, Oriental Bank of Commerce for delay, non-compliance in fraud reporting

The Reserve Bank of India on Saturday imposed a penalty of Rs 50 lakh on the country’s largest lender State Bank of India (SBI) for non-compliance relating to reporting of frauds. The Oriental Bank of Commerce was also slapped with a penalty of Rs 1.5 crore for delay in reporting fraud in the Kingfisher Airlines account.

In a regulatory filing, the SBI said, the RBI in exercise of the powers conferred under various sections of the Banking Regulations Act, has imposed a penalty of Rs 50 lakh on the bank for non-compliance with its directions relating to reporting of frauds.

Oriental Bank of Commerce, in its statement said, the state-owned lender has been imposed an aggregate penalty of Rs 1.5 crore for failure to classify and report the account of Kingfisher Airlines Limited as fraud.

In both the cases, the penalty is required to be paid within 14 days from the date of receipt of the RBI order.