Non-compliance issue: RBI imposes fine on Dena Bank, Central Bank

RBI has imposed a monetary penalty of  2 crore on Dena Bank and 1 crore on Central Bank of India.

Dena Bank on Saturday said the Reserve Bank of India has imposed a penalty of Rs 2 crore on it for non-compliance with the banking regulator’s directions issued on February 20, 2018.

The public sector bank, which along with Vijaya Bank, is set to be merged with Bank of Baroda, did not specify what directions the central bank had issued.

In a stock exchange notice, Dena Bank said “the Reserve Bank of India, in exercise of power conferred under …Banking Regulation Act, 1949, has imposed a penalty of Rs.20 million on the Bank for non-compliance with the directions issued on February 20, 2018 by Reserve Bank of India.”

In June 2017, RBI had initiated prompt corrective action (PCA) for Dena Bank in view of high net non-performing assets and negative return on assets. PCA is aimed at nursing weak banks back to health.

Central Bank of India said RBI has imposed an aggregate penalty of  1 crore due to some reconciliation related lapses.

“Bank has already taken necessary preventive measures to avoid such recurrence,” the public sector bank said in a stock exchange notice.