SRINAGAR: Jammu and Kashmir Bank is one of the 14 banks that were penalised by the regulator, Reserve Bank of India, reports in media said. They have been accused of non-compliance with some directions after scrutiny in the accounts of the companies of a Group.
The bank will have to cough up Rs 1 crore along with 12 other banks. Bank of Baroda has to pay Rs 2 crore and the State Bank of India Rs 50 lakh.
“Bank of Baroda and Karnataka Bank, in their stock exchange disclosures, said the penalty has been imposed on them for non-compliance with the directions issued by the RBI with respect to advances sanctioned to Infrastructure Leasing and Financial Services (IL&FS), and its group companies,” The Hindu Business Line reported.
RBI on Thursday said the banks were non-compliant with certain provisions of its directions on ‘Lending to Non-Banking Financial Companies (NBFCs)’, ‘Bank Finance to NBFCs’, ‘Loans and Advances – Statutory and Other Restrictions.’