Current Affairs

RBI imposed Rs 1.50 crore penalty on Corporation Bank

Current context: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 crore on Corporation Bank, by an order dated 29th November 2019.
RBI imposed Rs 1.50 crore penalty on Corporation Bank 
  • The penalty has been imposed for non-compliance with certain provisions of directions issued by RBI on:
    1. Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Divergence in NPA Accounts
    2. Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks 
    3. Framework to Revitalise the Distressed Assets in the Economy - Rectification and Restructuring
    4. End Use of Funds - Monitoring”, “Discounting/Rediscounting of Bills by Banks
    5. Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016
  • RBI has imposed the penalty in exercise of powers vested under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949.
  • Non-compliance with the RBI directions was revealed in the statutory inspection of the bank with reference to its financial position as on March 31, 2017 and the Risk Assessment Report (RAR).
  • RBI concluded to impose the penalty after considering the bank’s reply to show cause as to why penalty should not be imposed on it for non-compliance with the directions.
  • Corporation Bank is a public-sector banking company.
  • Headquarter: Mangalore, India
  • CEO: P. V. Bharathi (1 Feb 2019 till present)
  • Founder: Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur
  • Founded: 12 March 1906, Udupi
  • Tagline: A Premier Public Sector Bank, Prosperity for all

Question: 

Q.1 The Corporation Bank is headquartered at?
a. Mumbai
b. Bengaluru
c. Mangalore
d. Manipal
RBI imposed Rs 1.50 crore penalty on Corporation Bank RBI imposed Rs 1.50 crore penalty on Corporation Bank Reviewed by Neha Verma on November 30, 2019 Rating: 5

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