The directions pertain to 'Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions'.

"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,” the RBI said in a statement.

The statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by RBI with reference to its financial position as on 31 March 2020 and the examination of the Risk Assessment Report, Inspection Report and all related correspondences pertaining to the same, revealed non-compliance with the aforesaid directions to the extent the bank failed to credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer.

In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charge of non-compliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions.

Nationalised in 1969, Central Bank was wholly owned by GoI until July 2007. After an initial public offering, GoI's stake declined. It currently holds 93.08% stake in the bank as on 31 March 2022.

The bank had reported 68.6% rise in standalone net profit to Rs 278.92 crore on a 1.7% increase in total income to Rs 6666.45 crore in Q3 FY22 over Q3 FY21.