India slaps 4 public sector lenders with $705,000 fine

Corporation Bank’s penalty hit $282,000.

The Reserve Bank of India (RBI) has slapped four public sector banks with combined fines worth $705,000 (5 crores) for violation of central bank directions, reports Money Control.

Corporation Bank received the highest penalty of $282,000 (2 crores). Meanwhile, Bank of Baroda (BoB), SBI, and Union Bank of India each received penalties worth $141,000 (1 crore).

According to the central bank, such penalties are due to deficiencies in complying with regulations and is not for the purpose to pronounce upon the validity of any transaction or agreement between the banks and their customers. Banks violated rules on monitoring end use of funds, exchange of information with other banks, restructuring of accounts and classification and reporting of frauds

RBI also revealed that it has imposed penalties on seven lenders including Allahabad Bank, Bank of Maharashtra, HDFC, and Kotak Mahindra Bank for violation of various banking norms.