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RBI imposed fine of Rs 6.2 crore on two banks, know what was wrong

The Reserve Bank of India has imposed a fine of Rs five crore on the public sector bank of India for not complying with certain provisions. These also include provisions related to non-performing assets (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 of India was fined for this


In this context, the Reserve Bank said that the Bank of India (BoI) has been fined Rs five crore for not complying with certain provisions of the central bank’s directives. These come under the provision related to income recognition, asset classification and advances. Giving details of this, the Reserve Bank said that the statutory inspection of the BOI under the financial position as on March 31, 2017 and March 2018, revealed the fact that the bank has not complied with certain instructions. 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.  Karnataka Bank also did not follow the rules
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.

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