Reserve Bank of India (RBI) has fined three state-owned banks, including SBI, Indian Bank and Punjab & Sind Bank, for violation of various regulatory norms. 

State Bank of India (SBI) has been imposed a penalty of Rs 1.3 crore for non-compliance with certain directions issued by the RBI on 'Loans and Advances - Statutory and Other Restrictions' and 'Guidelines on Management of Intra-Group Transactions and Exposures'.

The violation included the sanctioning of a term loan to a corporation without conducting adequate due diligence on project viability and revenue streams.

RBI on Monday also said it has imposed a penalty of Rs 1.62 crore on Indian Bank for contravention of certain directions on ‘Loans and Advances Statutory and Other Restrictions’, KYC, and ‘RBI (Interest Rate on Deposits) Directions, 2016’.

A monetary penalty of Rs 1 crore on Punjab & Sind Bank was slapped for non-compliance with certain provisions of the depositor education and awareness fund scheme. 

The RBI has also imposed a penalty of Rs 8.80 lakh on Fedbank Financial Services Limited for non-compliance with certain provisions of the directions on monitoring fraud in non-banking financial companies (NBFCs). 

The RBI, however, added that the penalties on the banks and the NBFC are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their customers.