The Reserve Bank of India (RBI) has slapped a penalty of Rs 1.4 crore on state-owned Bank of India for non-compliance with certain regulatory norms. 

The regulator has also imposed a fine of Rs 29.55 lakh on private sector lender Bandhan Bank for non-compliance with certain directions.

The penalty on Bank of India has been imposed for non-compliance with the RBI's directions related to 'interest rate on deposits', 'customer service in banks', 'interest rate on advances', and contravention of provisions of Credit lnformation Companies Rules, 2006.

The RBI said statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as on 31 March  2021 and 31 March 2022.

The RBI also said a penalty of Rs 13.60 lakh has been imposed on Indostar Capital Finance for non-compliance with the 'Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016' and with certain provisions of KYC directions.

In all cases, the penalties were imposed for deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers, the RBI said.