The Reserve Bank of India on Wednesday imposed a fine of Rs 3 crore on IDBI Bank for failing to comply with norms related to reporting of bad loans. The central bank said the order was issued on April 9 for violating the Income Recognition and Asset Classification norms.
“This 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,” the central bank said.
The RBI said the action was not to decide on the validity of any transaction or agreement entered by the bank with its customers.
On March 27, IDBI Bank disclosed fraudulent loans worth Rs 772 crore issued from five of its branches in Telangana and Andhra Pradesh. The company said the Central Bureau of Investigation had filed cases for two of the five complaints.