Mumbai, Aug 6 (IANS): The Reserve Bank of India imposed monetary penalty on eleven banks for non-compliance with provisions of "Frauds classification and reporting by commercial banks and select FIs".

Individually, the penalty on 11 banks ranges from Rs 1.5 crore to Rs 50 lakh. Overall, the combined penalty comes to Rs 8.5 crore.

The likes of SBI, PNB and Bank of Baroda among others have been penalised.

"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."