Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹5 crore on Bank of India by order dated February 27, 2020. The penalty was imposed for non-compliance with RBI directions on income recognition, asset classification and provisioning for advances (including divergence in NPA accounts), opening of current accounts by banks, and classification and reporting of frauds. RBI said the action arose from deficiencies in regulatory compliance identified during statutory inspection and Risk Assessment Reports for the bank's financial position as of March 31, 2017 and March 31, 2018. After a show-cause notice, the bank's reply, oral submissions, and additional submissions, RBI concluded that the violations warranted monetary penalty under the Banking Regulation Act, 1949.