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