The Reserve Bank of India (RBI) has imposed monetary penalty on four public sector banks for violating various norms. These banks are — Corporation Bank, on which ₹2 crore penalty had been levied and State Bank of India, Bank of Baroda and Union Bank of India (penalty of ₹1 crore each).
“RBI has imposed, monetary penalty for non-compliance with various directions issued by RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts,” the banking regulator said.
RBI further added that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.
