On Tuesday, the Reserve Bank of India (RBI) said that it has imposed penalties on seven lenders for violating its banking norms.

On account of non-compliance with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts, the central bank has imposed a penalty of Rs 1.5 crore each on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank.

Andhra Bank was charged with a penalty of Rs 1 crore on similar penalties.

Further, RBI said that it has imposed penalties worth Rs 20 lakh each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for not complying with the central bank's directions on Know Your Customer (KYC) and Anti-Money Laundering (AML) standards.

The penalties have been imposed under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the failure of these banks to adhere with directions issued by RBI.

"This action 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 banks with their customers," RBI's press release added.