The central Bank on Wednesday slapped 4 major Public Sector Banks (PSB), including SBI and Corporation bank with a fine of ₹5 Crore. The Imposed fine was for the Faulting various banking norms.
The monetary penalty on the banks has been imposed for non-compliance with various directions issued by the RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, RBI said in a statement.
Corporation Bank was imposed with a ₹2 Crore fine, while other three Public Sector lenders which included State Bank of India(SBI), Bank of Baroda and Union Bank of India were fined ₹1 Crore Each.
The Central bank also cleared that the fines are only in relation to violation of certain banking norms and has no relation with any other aspect of banking such as validity any transaction or agreement with any customer by the banks.
Similarly, on Tuesday Reserve Bank also fined private lender Allahabad Bank with a penalty of ₹1.5 Crore for violation of banking norms prescribed by the RBI.
RBI imposed a ₹1.5 Crore penalty on Allahabad Bank for not properly monitoring its use of funds.
Read RBI imposes fine on Allahabad Bank for violating banking norms