TIL Desk/Business/New Delhi/ The Reserve Bank of India (RBI) said on Thursday that it has imposed a monetary penalty of Rs 5 crore on Bank of India. According to the regulator, the penalty was imposed for non-compliance with certain norms pertaining to the provisions of the directions issued by it on “Income Recognition, Asset Classification and Provisioning pertaining to Advances-Divergence in NPA accounts”, “Opening of current accounts by banks — Need for discipline”, and “Classification and reporting of frauds”.
“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,” it said.
In another case, RBI has imposed a penalty of Rs 1.20 crore on Karnataka Bank Ltd for non-compliance with certain provisions of directions issued by it on “Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances-Divergence in NPA Accounts” and “Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances”.
