reserve Bank of India (reserve Bank of India) said on Friday that it has imposed a fine of Rs 56 lakh Nainital Bank, Uttarakhand, for non-compliance with certain norms relating to classification of non-performing assets and frauds. The apex bank had conducted a statutory oversight for supervisory evaluation (whereas) with reference to its financial position as on 31st March, 2019 and found non-compliance with certain instructions.

The difference between the reported NPAs and the NPAs of the bank during the inspection was due to failure to classify certain borrowers. Accounts As NPA. There was also a failure to disclose material deviations relating to asset classification and provisioning identified by the RBI, despite exceeding the defined limits, RBI said in a statement.

There was also a failure on the part of the bank to report the fraud as per the directions of RBI.

RBI, however, said that the action against Nainital Bank is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.