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RBI Imposes Rs 5 Crore Penalty On Four Banks For Violating Banking Norms

HARSH RANJAN | 0
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| February 14 , 2019 , 17:59 IST

The Reserve Bank imposed penalties of Rs 5 crore on four public sector banks including SBI and Corporation Bank for violation of various banking norms.

The monetary penalty on the banks has been imposed for non-compliance with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification and reporting of frauds, and on the restructuring of accounts, RBI said in a statement.

A penalty of Rs 2 crore has been imposed on Corporation Bank and Rs 1 crore each State Bank of India (SBI), Bank of Baroda and Union Bank of India.

ALSO READ: Reserve Bank of India Imposes Penalty Of Rs 1-crore on Bajaj Finance

The RBI, however, added the fines are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

Earlier this month Reserve Bank of India had imposed a penalty of Rs 1 crore on Bajaj Finance Ltd, a non-banking financial company (NBFC) for deficiencies in regulatory compliance.

According to RBI, the penalty has been imposed, by an order on January 3, for violation of 'fair Practices Code of Master Direction DNBR'.