On August 3,2019, India’s central banking institution RBI(Reserve Bank of India) in exercise of the powers conferred under various sections of the Banking Regulations Act,1949 has imposed a penalty on nine commercial banks for violations of norms including delay on the reporting of fraud in the account of Kingfisher Airlines by two banks (PNB,OBC).
i. Here is the detailed table report of banks & the amounts of fine imposed by RBI.
| S.No | Name of the Bank | Amount of penalty | Violation |
| 1 | Punjab National Bank (PNB) | Rs 50 lakh | Delay in reporting of fraud in the account of Kingfisher Airlines. |
| 2 | Oriental Bank of Commerce(OBC) | Rs 1.5 crore | Delay in reporting fraud in the account of Kingfisher Airlines. |
| 3 | United Bank of India | Rs 1 crore | Non-compliance relating to reporting of frauds. |
| 4 | Punjab & Sind Bank | Rs 1 crore | Non-compliance relating to reporting of frauds. |
| 5 | State Bank of India (SBI) | Rs 50 lakh | Non-compliance relating to reporting of frauds. |
| 6 | Bank of Baroda(BoB) | Rs 50 lakh | Delay in reporting fraud in an account. |
| 7 | Federal Bank | Rs 50 lakh | Delay in reporting fraud in an account. |
| 8 | Corporation Bank | Rs 1 crore | Non-compliance with the directions on cybersecurity framework and frauds classification and reporting. |
| 9 | UCO Bank(United Commercial Bank) | Rs 1 crore | Delayed reporting of fraud. |
RBI imposes a collective penalty of Rs 11 crore on 7 public sector banks
On August 2, 2019, The Central also named seven banks for a collective fine of total Rs 11 crore for violation of its direction on fraud classification, reporting & opening of current accounts and reporting funds on balance sheet. The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
The list of 7 banks which faced penalties and the amounts include,
| S.No | Name of the bank | Amount of penalty (Rs. in crore) |
| 1 | Allahabad Bank | 2.0 |
| 2 | Bank of Baroda | 1.5 |
| 3 | Bank of India | 1.5 |
| 4 | Bank of Maharashtra | 2.0 |
| 5 | Indian Overseas Bank | 1.5 |
| 6 | Oriental Bank of Commerce | 1.0 |
| 7 | Union Bank of India | 1.5 |
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