The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 crore on Bank of Baroda (BoB) after it found irregularities in the Rs 6,100-crore scam that was unearthed last year.
- “The Reserve Bank of India has imposed a penalty of INR 50 million on Bank of Baroda… Pursuant to the internal audit of the Bank of Baroda, the Reserve Bank of India and investigative agencies in October 2015 were advised by the Bank of certain irregularities observed,” Bank of Baroda said in a BSE filing. Shares of Bank of Baroda were trading 1.92% at Rs 153.80 apiece on the BSE.
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Various irregularities by bank such as non-submission and inordinate delays in filing of Suspicious Transaction Reports (STRs), besides opening of accounts by several entities without fulfilling KYC norms, were noticed by Reserve Bank of India.
- Both CBI and the Enforcement Directorate are probing the huge remittances to Hong Kong from the bank. The amount was allegedly transferred in the garb of payments for imports that never took place, investigators say.
- After the BoB case, RBI wrote a confidential letter to chairmen and chief executives of all commercial banks asking them to review existing policies and effect necessary improvements where warranted to avoid recurrence of such irregularities.
Bank of Baroda
Founded: 20 July 1908
Founder: , Maharaja Sayajirao Gaekwad III
Headquarters: Vadodara in Gujarat, India.
