Reserve Bank of India imposes monetary penalty on four banks

New Delhi: The Reserve Bank of India (RBI) has imposed monetary penalty on four banks 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 four banks include  Bank of Baroda (penalty of Rs 10 million), Corporation Bank (penalty of Rs 10 million), State Bank of India (penalty of Rs 10 million) and Union Bank of India (penalty of Rs 10 million).

“These penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the above banks to adhere to the aforesaid directions issued by RBI,” the Central bank said in an official release.

This 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, RBI added.