Union Bank of India also has been fined to the tune of Rs 1 crore. On the other hand, Corporation Bank has been slapped with a penalty of Rs 2 crore.
The Reserve Bank of India has imposed crores of rupees worth of monetary penalty on four PSU banks, including the large ones State Bank of India (SBI) and Bank of Baroda. The monetary penalty has been imposed for non compliance with various directions issued by the RBI.
RBI has slapped a penalty of Rs 1 crore on SBI — India’s largest bank, it said. Further, it has levied a penalty of Rs 1 crore on Bank of Baroda too — another large PSU bank. Union Bank of India also has been fined to the tune of Rs 1 crore. On the other hand, Corporation Bank has been slapped with a penalty of Rs 2 crore.
The central bank imposed the fine for non-compliance on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, according to a statement by RBI. Further, the RBI added the fines are 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.
(First published on www.financialexpress.com on 13th February 2019)