The Federal Reserve Bank of India(RBI) has slapped a penalty amount to a complete of around Rs 6.50 crore on Bank of India, Karnataka Bank, and Saraswat Cooperative Bankas well. The central bank told that Bank of India has been fined for non-compliance with certain provisions, that include Income Recognition, Asset Classification, and also Provisioning pertaining to advances divergence in NPA accounts along with the classification and reporting of frauds and have been fined Rs 5 crore. Karnataka Bank fined around Rs 1.20 crore and Saraswat Cooperative Bank will have to pay around Rs 30 lakh to the central banks as well.
RBI told that it had inspected Bank of India in 2017 and 2018 where it had found non-compliance with the RBI directions. “In furtherance to an equivalent , a notice was issued to the bank advising it to point out cause on why penalty shouldn’t be imposed thereon for non-compliance with the directions,” because the words have given by RBI. After considering the Bank of India’s reply RBI, it concluded that the charges of non-compliance warranted the imposition of a fine on the Bank.
Karnataka Bank that a personal lender with assets over Rs 79,000 crore stands accused of not following the RBI’s rules and regulations on Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining, according to the RBI release. Karnataka Bank was asked by the Central Bank to present the side after an inspection in 2017 and 2018, after which the fine had imposed. “This action is predicated on the deficiencies in regulatory compliance and isn’t intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” as the Reserve Bank said.
Saraswat Cooperative Bank asked to pay around Rs 30 lakh crore by the RBI for not abiding the Income Recognition and Asset Classification(IRAC) norms through an order that dated on 20th February. RBI told that it had inspected the Bank in March 2018 after which the Bank’s reply was sought on the charges before imposing a monetary penalty on the cooperative lender.