The Reserve Bank of India (RBI) has decided to waive the ₹5 crore penalty that was previously imposed on Bank of Baroda, the lender said in an exchange filing on Thursday, January 11.
The RBI's decision, communicated through a letter dated January 10, 2024, comes as a relief for the bank, which had earlier faced financial scrutiny.
Previously, on December 22, 2023, Bank of Baroda had disclosed that the central bank had fined the lender ₹5 crore. The penalty was attributed to a shortfall in soiled note remittances, indicating issues with the handling of notes that had undergone normal wear and tear.
RBI had imposed an additional penalty of ₹2,750 on the state-owned bank after discovering instances of "fake and mutilated" notes within the soiled note remittances. The bank was apprised of these penalties on December 18 and 20, respectively.
The penalties imposed by the RBI align with its Clean Note Policy, a stringent framework necessitating the immediate imposition of penalties upon identifying deficiencies in soiled note remittances or chest balances, irrespective of the quantity involved.
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