RBI slaps fine of Rs 5 lakh on Bank of Baroda

New Delhi, Aug 11: The Reserve Bank of India has imposed a monetary fine of Rs 5 lakh on the Bank of Baroda for not computing its Demand and Time liabilities (DTL)/Net Demand and Time Liabilities (NDTL) properly for the purpose of maintaining cash reserve ratio and statutory liquidity ratio during the period April 1999 to March 2002.

No official of the bank has been held responsible in this matter, Minister of State for Finance Pawan Kumar Bansal said in a written answer in the Lok Sabha today.

The Minister said the Bank of Baroda has told the RBI in this matter saying that the error was unintentional and the bank has an unblemished record of compliance with the regulator.

Mr Bansal said the calculation/recalculation of NDTL for the captioned period was done four times by different teams by adopting different approaches but the results obtained were inconsistent and inconclusive in view of the inadequacy of the previous accounting system to capture and segregate such data.

UNI