RBI imposes Rs 6.50 crore penalty on 3 banks

New Delhi: The Reserve Bank of India (RBI) on Thursday imposed a penalty of Rs 6.50 crore on Karnataka Bank, Bank of India and Saraswat Co-operative Bank for non-compliance with central bank's Income Recognition and Asset Classification norms.

It fined Rs 5 crore on Bank of India, while it charged Rs 1.20 crore and Rs 30 lakh from Karnataka Bank and Saraswat Cooperative Bank, respectively.

The central bank said that this action is based on the deficiencies in regulatory compliance. It is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.