RBI Fines Three State-Run Banks Rs 1 Crore Each For Violating Fraud Reporting Norms 

The banking regulator asked Bank of India, Union Bank of India, and Bank of Maharashtra to pay a penalty of Rs 1 crore each for violating its instructions on detecting and reporting frauds in their accounts.

The Reserve Bank of India said all the three public sector lenders violated instructions issued in its master circular on the classification and reporting of fraud, according to a circular uploaded on its website today.

The master circular states that banks need to furnish a Fraud Monitoring Return in individual fraud cases, irrespective of the amount involved, to the central bank within three weeks from the date of detection to avoid similar frauds from taking place elsewhere.