RBI Imposes Penalties on 3 PSU Banks – Union Bank of India, Bank of India(BoI) and Central Bank of India

Union Bank of India, Bank of India, and Central Bank of India are three public sector banks that have been penalized by the Reserve Bank of India (RBI). 

Union Bank of India was penalized by the RBI Union Bank of India has been fined ₹95.40 lakh by the Reserve Bank of India (RBI). The bank was penalized for violating RBI regulations pertaining to automating asset classification procedures and minimizing client liability in unauthorized electronic transactions. 

RBI discovered the following problems after reading the bank's response and hearing its justification: 

Following reports of unauthorized activities, the bank failed to credit funds to clients' accounts within ten working days. Customers could not report unauthorized transactions to the bank around-the-clock.

For certain KCC accounts, the bank employed manual intervention in system-based asset classification. 

Bank of India was fined ₹58.50 lakh by the RBI for failing to comply with regulations pertaining to Priority Sector Lending and interest on deposits. 

Following examination and analysis, RBI discovered the following problems:

For minor priority sector loans up to ₹25,000, the bank imposed additional fees (such as processing and inspection expenses). Certain term deposits were not paid interest by the bank until they were repaid after they matured. 

The Central Bank of India was fined ₹63.60 lakh by the RBI for failing to comply with KYC and basic savings account regulations. Following examination, RBI discovered:

The bank did not upload KYC details of some customers to the Central KYC Registry on time.

The bank opened multiple basic savings accounts for customers who already had such accounts.

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RBI imposes Monetary Penalty on Bank of India(BOI)

 

Bank of India has been fined ₹1.85 lakh by the Reserve Bank of India (RBI) for some currency chest violations. Bank of India's Kanpur Currency Chest was fined ₹1,85,300. 

After anomalies in the way currency remittances were handled were discovered, the action was taken. 

In the soiled note remittance procedure, the RBI noticed problems with counterfeit money, a scarcity of notes, and damaged notes. The central bank chose to penalize the bank financially in light of these infractions. 

Due to irregularities with a currency chest, Punjab National Bank (PNB) was fined ₹5.66 lakh by the Reserve Bank of India (RBI) a few days ago.

A lack of notes found at a bank-run currency chest led to the imposition of the penalty.The management of the cash supply in the banking sector is largely dependent on currency chests. They support the RBI in ensuring that money flows freely throughout the nation.

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Banks will provide compensation to Customers for Digital Frauds

The Reserve Bank of India (RBI) has introduced a new compensation framework to help customers who suffer losses due to small value fraudulent electronic banking transactions. The rule aims to provide financial relief to genuine victims of online fraud.

The compensation scheme applies to individual customers who lose up to ₹50,000 due to fraudulent electronic transactions such as unauthorized online transfers or digital banking fraud.

Below are the key details of the new compensation rules.

If an individual customer becomes a victim of fraudulent electronic banking transactions and files a complaint, the person will receive compensation based on the following rule:

* The customer will receive 85% of the net loss amount, or ₹25,000, whichever is lower.

The compensation will be given only once in the customer’s lifetime. The net loss means the total loss after deducting any amount that has already been recovered or returned to the customer.

* If a customer loses ₹40,000 but ₹15,000 is recovered before compensation, the net loss becomes ₹25,000.

* In this case, compensation will be 85% of ₹25,000, which equals ₹21,250.

The compensation will be provided only if certain conditions are met.

The bank must confirm that the loss is genuine and bona fide, according to its internal policies.

The customer must report the fraud:

* On the National Cyber Crime Reporting Portal, or

* By calling the National Cyber Crime Helpline (1930).

* The fraud must also be reported to the bank within five calendar days of the transaction.

How the Compensation Amount Is Shared

The compensation amount paid to the customer is shared among three parties:

• Reserve Bank of India
• Customer’s bank
• Beneficiary bank (the bank where the fraud amount was transferred)

The contribution depends on the size of the loss.

Case 1: Loss Less Than ₹29,412

If the loss amount is less than ₹29,412 and compensation of 85% of the loss is paid:

• 65% of the compensation will be paid by the RBI
• 10% by the customer’s bank
• 10% by the beneficiary bank

Case 2: Loss Between ₹29,412 and ₹50,000

If the loss is ₹29,412 or more but not more than ₹50,000, the compensation will be ₹25,000. In this case, the contribution will be fixed as follows:

• RBI: ₹19,118
• Customer’s bank: ₹2,941
• Beneficiary bank: ₹2,941

What Happens if Money Is Recovered Later

Sometimes banks may recover part of the fraud amount after compensation has already been paid. In such cases, the bank will recalculate the compensation based on the final net loss and adjust the amount accordingly.

Examples to Understand the Rule

Example 1: Recovery Before Compensation

• Total fraud loss: ₹40,000
• Recovery before compensation: ₹15,000
• Net loss: ₹25,000

Compensation paid (85% of ₹25,000): ₹21,250

Contribution:

• RBI: ₹16,250
• Customer’s bank: ₹2,500
• Beneficiary bank: ₹2,500

Example 2: Full Recovery After Compensation

• Reported loss: ₹40,000
• Compensation paid: ₹25,000

Contribution:

• RBI: ₹19,118
• Customer’s bank: ₹2,941
• Beneficiary bank: ₹2,941

Later, the entire ₹40,000 is recovered. The recovered amount will be distributed as:

• Customer: ₹15,000
• RBI: ₹19,118
• Customer’s bank: ₹2,941
• Beneficiary bank: ₹2,941

Example 3: Partial Recovery After Compensation

• Reported loss: ₹40,000
• Compensation paid: ₹25,000

Contribution:

• RBI: ₹19,118
• Customer’s bank: ₹2,941
• Beneficiary bank: ₹2,941

Later recovery: ₹15,000

Net loss becomes ₹25,000, so the correct compensation should be ₹21,250.

Additional payment calculation:

₹15,000 + ₹21,250 − ₹25,000 = ₹11,250

Distribution of recovery:

• Customer: ₹11,250
• RBI: ₹2,868
• Customer’s bank: ₹441
• Beneficiary bank: ₹441

Application Process for Compensation

After reviewing the complaint, if the bank believes that the fraud case is genuine, it will provide the customer with an application form.

Once the customer submits the application, the bank must pay the compensation within five calendar days.

Banks will later seek reimbursement of the applicable amount from the RBI on a quarterly basis.

Validity of the Compensation Scheme

The compensation will be available only for fraudulent electronic banking transactions that occur within one year from the effective date of these directions.

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RBI Issues Strict Guidelines on Bank Misselling: No Bank Employee Incentives, No Calls After 6 PM

Strict restrictions have been established by the Reserve Bank of India (RBI) to prevent banks from misselling third-party products. Additionally, the RBI has stated that bank employees shouldn't receive incentives. 

Mis-selling: What is it? 

According to the RBI, mis-selling is defined as: 

1. Selling a product or service that is inappropriate or unsuitable for the customer's profile, even if the customer has given their express assent; 

2. Selling a product or service without supplying accurate or comprehensive information, or by providing misleading information;

3. Selling a product or service without the express approval of the customer; 

4. Selling a desired product or service while forcing the sale of another product or service; 

5. Selling a product or service that includes any additional elements deemed to be mis-selling by the relevant financial sector regulator.

Third-party Financial Product or Service is a product or service offered by a bank to its customers on behalf of a third party company such as selling insurance on behalf of an insurance company.

Guidelines for DSA

A bank, availing the services of DSAs / DMAs, shall maintain an up-to-date list of DSAs / DMAs empanelled / engaged with it. Such list shall include the name and other details of the DSAs / DMAs, the period of engagement, etc. Further, an updated list of such DSAs / DMAs shall be displayed on the bank’s website for reference by the members of public.

A bank shall ensure that its employees or DSAs / DMAs:

1. make telephonic contacts and / or visits to customers normally between 09:00 hours and 18:00 hours. Calls / visits earlier or later than the prescribed time period shall be done only when the customer has expressly given a request or authorisation to do so;
2. do not call a customer regarding products already sold to him / her and if a customer calls for any such product, advise him / her to contact the customer service staff of the bank and provide the contact details.

No Incentive

A bank shall ensure that its policies and practices (e.g., organizing competitions among business units for sale of products / services, earmarking specific days of the week / month for targeted selling of particular products / services, etc.) neither create incentives for mis-selling nor encourage employees / DSAs to ‘push’ the sale of products / services. It shall be ensured specifically that no incentive is directly / indirectly received by the employees engaged in marketing / sales of third-party products / services from the third-party.

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RBI Office Attendant Recruitment 2026 Announcement for 572 Positions

The official announcement for Office Attendant Recruitment 2026 under Panel Year 2025 has been made public by the Reserve Bank of India (RBI). There are 572 open positions for various RBI offices around the nation.

RBI Office Attendant Recruitment 2026 Important Dates

Important Events	Dates
Commencement of online registration of application	15/01/2026
Closure of registration of application	04/02/2026
Closure for editing application details	04/02/2026
Last date for printing your application	19/02/2026
Online Fee Payment	15/01/2026 to 04/02/2026

RBI Office Attendant Recruitment 2026 Educational Qualification

Post Name	Qualification
Office Attendant	10th Class Pass with knowledge of the local language

RBI Office Attendant Recruitment 2026 Pay Scale

• Selected candidates will receive an initial basic pay of ₹24,250 per month under the pay scale of ₹24,250 – 840 (4) – 27,610 – 980 (3) – 30,550 – 1,200 (3) – 34,150 – 1,620 (2) – 37,390 – 1,990 (4) – 45,350 – 2,700 (2) – 50,750 – 2,800 (1) – 53,550, along with other applicable allowances from time to time.
• At present, the initial gross monthly salary (excluding HRA) for Office Attendants is around ₹46,029.
• In addition, House Rent Allowance at the rate of 15% of basic pay will be provided if the employee is not residing in bank-provided accommodation.

RBI Office Attendant Recruitment 2026 Notification PDF

RBI Office Attendant Recruitment 2026 Notification PDF

Apply Online

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RBI Ombudsman received over 13 lac complaints in FY 2024-25, while complaints against private sector banks grew

 

The Reserve Bank's Integrated Ombudsman Scheme (RB-IOS) received 13,34,244 complaints in FY 2024-25, up 13.55% from 11,75,075 in FY 2023-24. These Complaints were submitted by email, letter at the CRPC, or through the CMS portal. 

9,11,384 complaints were sent to the CRPC. Of these, 1,08,331 complaints were sent to the ORBIOs and 10,589 to CEPCs for processing. The remaining 7,76,336 were deemed non-maintainable or non-complaints. As of the end of FY 2024-25, 16,128 complaints were pending before the CRPC.

The ORBIOs received a total of 2,96,321 complaints in FY 2024-25, including 1,87,990 through the CMS portal and 1,08,331 recommended by the CRPC. This was a 0.82% rise from 2,93,924 complaints in FY 2023-24. Complaints received per lakh accounts at ORBIOs declined from 8.9 in FY 2023-24 to 7.7 in FY 2024-25 at the national level. 

Of the total complaints at ORBIOs, 91.22% were reported digitally through the CMS site or email. Individuals accounted for the highest share with 2,58,365 complaints (87.19%). Among categories, complaints relating to loans and advances were the greatest in FY 2024-25, followed by credit card complaints. Complaints involving mobile or electronic banking fell by 12.74% year-on-year.

With 2,41,601 cases, or 81.53% of all complaints received by the ORBIOs in FY 2024–2025, complaints against banks constituted the greatest share. NBFCs accounted for 43,864 complaints or 14.80%. 

Among banks, private sector banks received the most complaints, going from 34.39% in FY 2023-24 to 37.53% in FY 2024-25. The percentage of complaints against public sector banks decreased from 38.32% in FY 2023–2024 to 34.80% in FY 2024–2025.

In FY 2024–2025, the ORBIOs resolved 2,90,567 complaints, including ongoing cases, for a disposal rate of 93.07%. Of them, 1,80,621 complaints (62.16%) were manageable, while the rest were categorized as non-maintainable. Of the maintainable complaints, 43.36% were rejected and 51.91% were settled through conciliation, mediation, or mutual settlement. 

The Appellate Authority received 104 challenges against Ombudsman rulings during the year. Of these, 98 were submitted by complainants and 6 by regulated entities.

The Contact Centre (toll free: 14448) operating from Chandigarh, Kochi, and Bhubaneswar, it handled 9,27,598 calls in FY 2024-25, a rise of 28.89% from the previous year. Of these calls, 60.64% were handled through the IVRS system and 38.59% by staff. Abandoned calls dropped sharply to 0.78%. Hindi accounted for 70.43% of calls, English 6.73%, and 22.84% were in regional languages including Assamese, Bengali, Gujarati, Kannada, Odia, Punjabi, Malayalam, Marathi, Tamil, and Telugu.

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RBI New Circular on Death Claim Settlement

 The Reserve Bank of India (RBI) has released a new circular for Death Claim Settlement.

The nomination facility in deposit accounts, safe deposit lockers and articles in safe custody under the provisions of Sections 45ZA to ZF of the Banking Regulation Act, 1949 read with Section 56 of the Act ibid is intended to facilitate expeditious settlement of claims by banks upon death of a deceased customer and to minimise hardship caused to the family members. Further, in cases where nomination is not registered, the extant instructions require banks to adopt a simplified procedure for settlement of the claims up to a threshold limit. However, it is observed that divergent practices are being followed by banks. Hence, it has been decided to review the extant instructions and issue revised regulations to streamline the procedures and standardise the documentation to bring improvement in the quality of customer service in this regard.

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Cheque Clearing in Few Hours! RBI launches Continuous Cheque Clearing

The Reserve Bank of India (RBI) has launched Continuous CTS Cheque Clearing. Now, Cheques will be cleared in just a few hours. RBI has decided to transition CTS to continuous clearing and settlement on realisation in two phases. Phase 1 shall be implemented on October 4, 2025 and Phase 2 on January 3, 2026.

RBI Guidelines on Continuous Clearing with Settlement On-realisation in CTS

1. Single presentation session with continuous delivery:

There shall be a single presentation session from 10:00 AM to 4:00 PM.

Cheques received by the branches shall be scanned and sent to the clearing house by the banks immediately and continuously during the presentation session.

The clearing house will in turn release the cheque images to drawee banks on a continuous basis.

2. Continuous inward processing and confirmation by banks:

The confirmation session shall start at 10:00 AM and close at 7:00 PM.

For every cheque presented, the drawee bank shall generate either positive confirmation (for honoured cheques) or negative confirmation (for dishonoured cheques).

Each cheque will contain the ‘Item Expiry Time’ which indicates the latest time by which confirmation for the presented instrument needs to be provided by the drawee bank.

Processing by drawee banks is to be done continuously throughout the day and on a real time basis as soon as cheque images are received.

Information of positive/negative confirmation shall be sent by the drawee banks to the clearing house immediately after processing.

3. Time available for inward processing:

During phase 1 (From October 4 to January 2, 2026), drawee banks shall be required to confirm (positively / negatively) cheques presented on them latest by end of confirmation session (i.e. 7:00 PM) else those will be deemed to have been approved and included for settlement. Item expiry time for all cheques shall be set as 7:00 PM in phase 1.

In Phase 2 (from January 3, 2026), the item expiry time of cheques shall be changed to T+3 clear hours. For example, the cheques received by drawee banks between 10:00 AM and 11:00 AM will have to be confirmed positively or negatively by them by 2:00 PM (3 hours from 11:00 AM). Cheques for which confirmation is not provided by the drawee bank in the prescribed 3 hours shall be treated as deemed approved and included for settlement at 2:00 PM.

4. Settlement on realisation:

No accounting entries (settlement) will be posted for presentation of cheques.

Starting from 11:00 AM, settlement will be arrived every hour till the end of confirmation session, based on the positive confirmations received from drawee banks and cheques considered deemed approved.

No accounting entries shall be passed for cheques with negative confirmation.

5. Releasing payment to customers:

On completion of settlement, clearing house shall release the information of positive and negative confirmations to the presenting bank.

The presenting bank shall process the same and release the payment to the customers immediately, but not later than 1 hour from successful settlement, subject to usual safeguards.

Download RBI Circular on Continuous Clearing

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