The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 crore on Bank of Baroda (BoB). It observed 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. This was imposed after the internal audit of the Bank of Baroda, after the investigating agencies in October 2015 were reported by the Bank about certain irregularities. The RBI carried out the investigation and found the irregularities, which showed the weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU (Financial Intelligence Unit), and assigning of UCIC (Unique Customer Identification Code) to customers.
Bank of Baroda has however contended that measures are taken for corrective actions, to strengthen the internal controls and avoidance of such incidents in future. RBI had observed various irregularities by BOB which related to non-submission and inordinate delays in filing of Suspicious Transaction Reports (STRs), Opening of accounts by several entities without fulfilling KYC norms. RBI had conducted inspection of Bank of Baroda, after last years BOB case, wherein the Bank had incurred a loss of Rs. 6,100 crores in import remittances. The same is under probe by the investigating agencies.