The Reserve Bank of India on Wednesday imposed penalties of Rs 5 crore on four public sector banks, including the State Bank of India, 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 the RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, the central bank said in a statement.
A penalty of Rs 2 crore has been imposed on Corporation Bank and Rs 1 crore each on State Bank of India, Bank of Baroda and Union Bank of India.
The RBI, however, said 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.
On Tuesday, the RBI imposed penalties of Rs 1.5 crore each on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank, according to a statement on the central bank's website. Andhra Bank was served with a penalty of Rs 1 crore, it said.
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