The Reserve Bank of India (RBI) has imposed penalty on 14 banks, including State Bank of India (SBI), Bank of Baroda, IndusInd Bank and Bandhan Bank for violating regulatory norms.

The penalty totals Rs 14.5 crore, with a maximum Rs 2 crore fine on Bank of Baroda. State Bank has been fined Rs 50 lakh.

The fine slapped on these banks is for various violations, including on lending to non-banking financial companies (NBFCs).

As per the RBI release, Rs 1 crore penalty has been imposed each on Bandhan Bank, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, South Indian Bank, The Jammu & Kashmir Bank, and Utkarsh Small Finance Bank.

RBI said scrutiny in the accounts of the "companies of a Group" was carried out and it was observed that the banks had failed to comply with certain provisions.

Notices were issued to the banks, advising them to show cause as to why a penalty should not be imposed for non-compliance with the directions/contraventions of provisions of the Banking Regulation Act, 1949.

The penalties have been imposed for non-compliance with certain provisions of directions issued by the RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’, ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’, ‘Loans and Advances – Statutory and Other Restrictions’, and ‘Creation of a Central Repository of Large Common Exposures – Across Banks’, among others.

The RBI, however, said penalties have been imposed based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.