The Reserve Bank of India (RBI) on Thursday fined Rs 3 crore to IDBI Bank for not reporting of bad loans to the regulatory board. A bank official reportedly said, “The RBI said the penalty was imposed on account of non-compliance with the directions issued on Income Recognition and Asset Classification (IRAC) norms.” “This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to the aforesaid directions issued by the RBI,” reads the notification.
In a filing to Bombay Stock Exchange (BSE), IDBI banks in reply said, “This is to inform that the Reserve Bank of India (RBI) vide its letter dated April 10, 2018 has imposed a monetary penalty of Rs 30 million on the Bank in exercise of the powers for non compliance with the directions issued by it on Income Recognition and Asset Classification (IRAC) norms.”
A few days ago, the Reserve Bank of India (RBI) has slapped a penalty of Rs 58.90 crore on ICICI Bank. The penalty was imposed by the RBI as ICICI Bank failed to comply with RBI directions on the direct sale of securities from its Held to Maturity (HTM) portfolio and specified disclosure in this regard. The penalty of Rs 58.9 crore comes after the board had expressed full faith and confidence in Chanda Kochhar.For all the latest Business News, download NewsX App