RBI penalises UCO Bank, Axis Bank and Syndicate Bank

Mumbai: The Reserve Bank of India (RBI) has imposed separate monetary penalties on lenders -- UCO Bank, Axis Bank and Syndicate Bank -- over deficiencies in complying with different regulatory norms.

The RBI imposed a penalty of Rs 2 crore each on UCO Bank and Axis Bank for non-compliance with its circular on `Collection of Account Payee Cheques - Prohibition on Crediting Proceeds to Third Party Account` and Master Directions on `Frauds - Classification and Reporting by commercial banks and select FIs`.

In addition, a separate penalty of Rs 20 lakh was imposed on Axis Bank for contravention of the directions contained in `Master Circular on Detection and Impounding of Counterfeit Notes` and, the `Circular on Sorting of Notes - Installation of Note Sorting Machines`.

In another statement, the RBI said it has imposed a penalty of Rs 1 crore on the government-owned Syndicate Bank for non-compliance with the directions contained in `Master Circular on Frauds - Classification and Reporting` and `Circular on Risk Management Systems in Banks`.