ALSO READRBI fines YES Bank Rs 6 cr, IDFC Bank Rs 2 cr over compliance issues RBI imposes Rs 1 cr penalty on Union Bank of India for KYC non-compliance RBI initiates PCA against Bank of Maharashtra as bad loans rise Provide adequate transaction details in passbooks: RBI to banks RBI liberalises tier-I presence in new bank branch policy
The RBI in a release said the 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 bank with its customers.
The status report of the bank based on its financial position as on December 31, 2016, revealed, inter alia, non- adherence with certain directions pertaining to sanction / renewal of loans and advances, the central bank said.
"Based on the status report, a notice was issued to the bank dated August 7, 2017 advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI," it added.
After considering the bank's reply and oral submissions made in the personal hearing, RBI said, "it came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty".
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)