RBI imposes penalties on three banks for non-compliance of norms

Bank of India suffers Rs 5 cr fine, Karnataka, Saraswat hit with Rs 1.2 cr and Rs 30 lakh penalty

The Reserve Bank of India (RBI) on Thursday imposed monetary penalty on three banks for non-compliance of certain prudential norms on income recognition, asset classification and provisioning requirements.

The banking regulator imposed a penalty of Rs 5 crore on Bank of India as it found in its statutory inspection of the banks’ financial position as on March 31,2017 and March 31, 2018 that the lender was not in compliance with certain norms pertaining to income recognition, asset classification, provisioning pertaining to advances (divergence in NPA accounts), opening of current accounts by banks (need for discipline), and classification and reporting of frauds.