RBI penalises Allahabad Bank, Corporation Bank

Mumbai: The Reserve Bank of India (RBI) has imposed separate monetary penalties on lenders Allahabad Bank and Corporation Bank over deficiencies in complying with various regulatory norms.

In a regulatory filing to the BSE on Friday, the Allahabad Bank said that the RBI has imposed a penalty of Rs 1.5 crore “for not monitoring the end use of funds, delay in classification and reporting of fraud and non-adherence with RBI guidelines during restructuring of accounts in respect of one of its borrowers”.

The Corporation Bank in a similar regulatory filing said the RBI has imposed a penalty of Rs 2 crore on the government-owned lender “due to some lapses in monitoring of end use of funds and exchange of information with other banks in respect of one borrower along with some other banks”.