The Reserve Bank of India (RBI) has slapped penalty on Canara Bank, Bank of India and Jammu and Kashmir Bank for deficiencies in regulatory compliance.

A penalty of Rs 1.63 crore has been imposed on public sector Canara Bank for non-compliance with certain directions on priority sector lending, the interest rate on deposits and financial inclusion – access to banking services – Basic Savings Bank Deposit Account (BSBDA).

Jammu and Kashmir Bank has been fined Rs 3.31 crore for contravention of certain norms related to financial inclusion – access to banking Services – BSBDA, ‘Know Your Customer’ and ‘Loans and Advances – Statutory and Other Restrictions’.

In another release, the RBI said Rs 1 crore penalty has been imposed on the Bank of India for non-compliance with certain provisions of the Banking Regulation Act, 1949.

Also, a penalty of Rs 1 lakh has been imposed on Datson Exports, West Bengal for non-compliance with certain directions issued by the RBI on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs’.

In each case, the RBI said penalties were based on deficiencies in statutory and regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.