RBI imposes fines of Rs6.5 crore on three banks
1 min read . Updated: 28 May 2020, 09:32 PM ISTBank of India was fined Rs5 crore, Karnataka Bank and Saraswat Co-operative Bank Rs1.2 crore and Rs30 lakh, respectively
MUMBAI : The Reserve Bank of India (RBI) on Thursday said it has imposed a fine of ₹6.5 crore on three banks, Bank of India, Karnataka Bank and Saraswat Co-operative Bank.
While Bank of India (BoI) was fined ₹5 crore, Karnataka Bank and Saraswat Co-operative Bank were fined ₹1.2 crore and ₹30 lakh, respectively. For Bank of India, RBI said, the fine was imposed because it violated certain provisions on asset classification, divergence, opening of current accounts, and classification and reporting of frauds.
The fine on Karnataka Bank, RBI said, was imposed for non-compliance of asset classification, divergence and provisioning norms. Meanwhile, Saraswat Co-operative Bank violated asset classification norms and was therefore fined.
On 29 January, RBI had said it imposed a penalty of ₹1 crore on HDFC Bank for non-compliance with its know your customer (KYC) norms. According to the regulator, based on the observations made during the on-site Inspection for Supervisory Evaluation of the bank undertaken by RBI for the financial year ended 31 March, 2017, a scrutiny of 39 current accounts opened by its customers for bidding in Initial Public Offer (IPO) was conducted. This scrutiny, RBI said, revealed that the bank had failed to exercise ongoing due diligence in those accounts.
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