RBI imposed Penalty on BoI and PNB

Current Context: The Reserve Bank of India (RBI) has imposed a penalty on the Bank of India and Punjab National Bank.

• A penalty of a total of Rs 6 crore was imposed on the banks.
• The penalty was imposed for not following norms related to Frauds – Classification and Reporting.
• The Bank of India has imposed a penalty of Rs 4 crore and Punjab National Bank has imposed a penalty of Rs 2 crore, thus totalling Rs 6 crore penalty.
• The RBI mentioned that the statutory Inspection for Supervisory Evaluation (lSE) of the Bank of India was conducted with reference to its financial position as of March 31, 2019. The bank had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated January 1, 2019, pertaining to the detection of fraud in an account.
• After examining the reports related to the ISE and the FMR, it was observed non-compliance with the norms like a breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting fraud to RBI and sale of a fraudulent asset by Bank of India. For these reasons, the penalty was imposed on BoI.
• The RBI mentioned that the statutory ISE of Punjab National Bank was conducted with reference to its financial position as of March 31, 2018 (ISE 2018) and March 31, 2019 (ISE 2019).
• Thus by examining the risk assessment reports for ISE 2018 and 2019 it was revealed that PNB did not follow norms and was responsible for delay in reporting of frauds and not ensuring data accuracy and integrity while submitting data on the CRILC platform/ to RBI. For these reasons, the penalty was imposed on PNB
• Static Part: 
• HQ of RBI: Mumbai
• Governor of RBI: Shaktikanta Das
• HQ of BoI: Mumbai
• Tagline of BoI: Relationship Beyond Banking
• MD and CEO of BoI: Atanu Kumar Das
• HQ of PNB: New Delhi
• Tagline of PNB: The Name You can Bank Upon
• MD and CEO of PNB: S S Mallikarjuna Rao

Question: 

Q.1 RBI imposed a penalty of Rs ____ on Bank of India and Rs ___ on Punjab National Bank for not following norms related to Frauds – Classification and Reporting?
a. Rs 2 crore, Rs 4 crore
b. Rs 3 crore, Rs 2 crore
c. Rs 4 crore, Rs 2 crore 

d. Rs 5 crore, Rs 1 crore