The penalty on the banks individually ranges from Rs 1.5 crore to Rs 50 lakh. The combined penalty overall is around Rs 8.5 crore.
The banks that have been penalised include State Bank of India, Punjab National Bank and Bank of Baroda, among others.
“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers,” RBI said in a statement on Monday.
“It was observed that despite having been advised by RBI to report fraud in an account “immediately” in the backdrop of Central Bureau of Investigation (CBI) having initiated criminal proceedings, the banks had delayed or did not report fraud to RBI resulting in non-compliance with directions issued by RBI as mentioned above.”