Bank of India attracts Rs5 crore penalty
MUMBAI: The Reserve Bank of India (RBI) has slapped penalty on Bank of India (BOI), Karnataka Bank and Saraswat Cooperative Bank for deviating on regulatory requirements set by RBI.
BOI has attracted Rs5 crore penalty due to non-compliance on several RBI requirements such as Income Recognition, Asset Classification and Provisioning pertaining to Advances, Divergence in NPA accounts, Opening of current accounts by banks, Need for discipline”, and Classification and reporting of frauds, according to a press statement .
In the case of Karnataka Bank Ltd, the penalty was Rs1.20 crore and the charges were non-compliance with regard to Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances, Divergence in NPA Accounts, Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances.
The penalty on Saraswat Cooperative Bank was much lower at Rs30 lakh and the lone charge against the leading cooperative bank was the non-compliance with directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms.
