The RBI has also imposed penalties on Karnataka Bank and Saraswat Cooperative Bank apart from the Bank of India.

File photo of RBI (Photo Credits: PTI)

Reserve Bank of India on Thursday imposed a penalty of Rs 5 crore on the Bank of India for non-compliance with the national bank’s previous directions.

Earlier, the RBI had found Bank of India guilty as the result of a statutory inspection with respect to its financial position as on March 31, 2017 and March, 2018. India’ national bank has now stated that the Bank of India flouted RBI’s norms surrounding risk assessment reports.

A showcause notice had been served to Bank of India by the RBI, seeking reasons why a monetary penalty should not be imposed. The bank responded, however, RBI did not find its response satisfactory.

In addition, two other banks, namely Karnataka Bank Ltd, and Saraswat Cooperative Bank have also been slapped with penalties. While Karnataka Bank Ltd faces a penalty of Rs 1.20 crore, a penalty of Rs 30 lakh has been imposed on Saraswat Cooperative Bank.

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