RBI penalises 4 major banks for non-compliance of orders

New Delhi: Four major banks " Bank of Baroda, Corporation bank, State Bank of India and Union Bank of India -- were on Wednesday penalized to pay a fine of Rs 5 crore by the Reserve bank of India.

The central bank has asked the banks to pay the fine for violating the RBI directions of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts.

The RBI has imposed the penalty in its order on January 31, this year."This 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 banks with their customers," the Central Bank said in a statement here.(UNI)