A penalty of RS 6.50 crore imposed on three banks by RBI
Karnataka Bank, Saraswat Co-operative Bank and Bank of India were under scrutiny for non-compliance with the Income Recognition and Asset Classification norms of the central bank.
Following which the Reserve Bank of India(RBI) imposed a penalty of Rs 6.50 crore the three banks.
Bank of India was fined the highest with its penalty being Rs 5 crore, while a fine of Rs 1.20 crore was imposed on Karnataka Bank. Saraswat Cooperative Bank was charged Rs 30 lakh.
The central bank later stated the action was taken in lieu of defective regulatory compliance by the banks. Validity of any transaction or agreement between the bank and its customers stood unpronounced by this.
Writer -Arunima Sengupta