The Reserve Bank of India (RBI) has imposed Rs 2 crore penalty on UCO Bank for non-compliance of instructions issued by RBI on the collection of account payee instruments and those on frauds-classification and reporting.
a. Dena Bank
b. Vijaya Bank
c. UCO Bank
d. United Bank
About RBI's directions on Fraud Classification and Reporting:
- The Reserve Bank of India (RBI) advises banks from time to time about the major fraud-prone areas and the safeguards necessary for the prevention of frauds.
- RBI also forwards the details of frauds of an ingenious nature not reported earlier so that banks could introduce necessary safeguards by way of appropriate procedures and internal checks.
- It is a continuous process that banks report to the Reserve Bank full information about frauds and the follow-up action taken thereon.
Classification of Fraud based on the provisions of the Indian Penal Code:
- Misappropriation and criminal breach of trust.
- Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property.
- Unauthorised credit facilities extended for reward or for illegal gratification.
- Negligence and cash shortages.
- Cheating and forgery.
- Irregularities in foreign exchange transactions.
- Any other type of fraud not coming under the specific heads as above.
One must know:
- The UCO Bank which is under the prompt corrective action (PCA) framework of RBI has reported a net loss of Rs 633.88 crore for the first quarter of this financial year.
Question:
Q. The Reserve Bank of India (RBI) has imposed Rs 2 crore penalty on which bank for non-compliance of instructions issued by RBI on the collection of account payee instruments and those on frauds-classification and reporting?a. Dena Bank
b. Vijaya Bank
c. UCO Bank
d. United Bank
