Mumbai: The Reserve Bank of India (RBI) has imposed a Rs.5 crore penalty on Bank of Baroda in connection with a foreign exchange scam detected at the bank last year. A foreign exchange scam was unearthed at Bank of Baroda and a number of public and private sector lenders were found to be affected by it. In January, the central bank had asked all public and private sector lenders involved in the matter to conduct internal audits and present a report to their audit committees. Bank of Baroda has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur, it said in the notification. Bank of Baroda’s Ashok Vihar branch in New Delhi was central to the entire racket, where according to the CBI, over Rs.6,000 crore worth of funds were transferred illegally.

Source: Mint July 25, 2016 08:03 UTC