RBI imposes Rs 30 million penalty on IDBI Bank

The central bank imposed the fine for non-compliance with directions issued on income recognition and asset classification norms.

The RBI on Wednesday said it has imposed a penalty of Rs 30 million on IDBI Bank for non-compliance with the directions issued by it on income recognition and asset classification norms.

IDBI Bank will have to pay the fine for non-compliance with RBI norms. (Mint File Photo)

“The Reserve Bank of India (RBI) has imposed, through an order dated April 9, 2018, a monetary penalty of Rs 30 million on IDBI Bank Limited (the bank) for non-compliance with the directions issued by RBI on income recognition and asset classification (IRAC) norms,” the central bank said in a statement.

The penalty has been imposed in exercise of powers vested in 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 directions issued by RBI, it added.

It further said, the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.