Kultejas News
Business

rbi penalty on boi: RBI imposed penalty on BOI and Karnataka Bank, what was wrong? – rbi imposes penalty on 2 banks boi and karnataka bank

Edited By Sujata Kushwaha | Agencies | Updated: 29 May 2020, 10:22:00 AM IST

Highlights
  • Public Sector Bank of India fined Rs five crore
  • Karnataka Bank also fined Rs 1.2 crore for failing to comply with NPA rules
  • After the bank's reply to the notice and a personal hearing, it has been decided to impose a fine on the bank.

new Delhi

Reserve Bank of India i.e. RBI has imposed fine on two banks. These banks have not complied with certain provisions, due to which they have been fined. These provisions also include provisions related to the NPA.

BOI fined 5 crores

Public sector Bank of India has been fined Rs five crore. They also include provisions related to NPAs. Apart from this, the central bank has also imposed a penalty of Rs 1.2 crore on Karnataka Bank for failing to comply with the NPA rules.

Bank missed provisions

The Reserve Bank said it has imposed a penalty of Rs five crore on the Bank of India (BoI) for not complying with certain provisions of the central bank's directives. These are covered under the provisions related to income recognition, asset classification and advances. Giving details of this, the Reserve Bank stated that the statutory inspection of the BOI under the financial position of March 31, 2017 and March 2018 revealed the fact that the bank has not complied with certain instructions.

Karnataka Bank fined Rs 1.2 crore

Notice was given to the bank about this. After the bank's response to the notice and a personal hearing, it has been decided to impose a fine on the bank. In a similar case, the Reserve Bank has imposed a fine of Rs 1.2 crore on Karnataka Bank. The central bank has also imposed a fine of Rs 30 lakh on Saraswat Co-operative Bank for not complying with the instructions on Income Recognition and Asset Classification (IRAC) rules.

Source link

Related posts

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

x