The Reserve Bank of India (RBI) said that it has imposed a monetary penalty on Bank of India (BOI) and Karnataka Bank.

According to the regulator, the BOI faced penalty of five crore rupees because of non-compliance with certain norms pertaining to the provisions of the directions issued by it on "Income Recognition, Asset Classification and Provisioning pertaining to Advances-Divergence in NPA accounts", "Opening of current accounts by banks -- Need for discipline", and "Classification and reporting of frauds".

In another case, a penalty of Rs 1.20 crore was imposed on Karnataka Bank for non-compliance with certain provisions of directions issued by it on "Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances-Divergence in NPA Accounts" and "Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances".

Similarly, a fine of Rs 30 lakh has been imposed on Saraswat Cooperative Bank for non-compliance with the directions issued by the RBI on "Income Recognition and Asset Classification (IRAC) norms", the RBI said in a statement.

The RBI also announced to extend the special directions issued to Pune-based Rupee Co-operative Bank till August 31. The RBI had imposed restrictions on the bank in February 2013 following deterioration in its financials.