Mumbai: The Reserve Bank of India (RBI) said on Thursday that it has imposed a monetary penalty of Rs 5 crore on Bank of India. Also Read - Are we Heading Into Recession? India's GDP Growth For 2020-21 to Remain in Negative? Here's What RBI Governor Says

According to the regulator, the penalty was imposed for non-compliance with certain norms pertaining to the provisions of the directions issued by it on “Income Recognition, Asset Classification and Provisioning pertaining to Advances-Divergence in NPA accounts”, “Opening of current accounts by banks — Need for discipline”, and “Classification and reporting of frauds”. Also Read - No EMI Till August? What About Accumulated Interests? Breaking Down RBI Governor's Latest Announcements

“This action is based on the 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,” it said. Also Read - RBI Press Meet Today: Repo Rate Reduced by 40 Basis Points, GDP Growth to Remain in Negative Territory, Moratorium Extended For 3 Months Again

In another case, RBI has imposed a penalty of Rs 1.20 crore on Karnataka Bank Ltd for non-compliance with certain provisions of directions issued by it on “Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances-Divergence in NPA Accounts” and “Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances”.

Similarly, a fine of Rs 30 lakh has been imposed on Saraswat Cooperative Bank Ltd for non-compliance with the directions issued by the RBI on “Income Recognition and Asset Classification (IRAC) norms”, the RBI said in a statement.

The RBI also announced to extend the special directions issued to Pune-based Rupee Co-operative Bank till August 31. The RBI had imposed restrictions on the bank in February 2013 following deterioration in its financials.

“The aforesaid extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank,” it said.