For a change, the Reserve Bank of India has on November 10, 2020, imposed a monetary penalty of Rs fifty lakh on Central Bank of India for non-compliance with certain provisions of directions issued by RBI contained in the circular on “Housing Sector- Innovative Housing Loan Products – Upfront disbursal of housing loans” dated September 3, 2013.
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, noted RBI in its press release.
It is usually the UCBs which are at the receiving end of the RBI. News of commercial and govt sector banks defaulting on RBI norms has led to sigh of relief for them.