Mumbai, Sep 14 (PTI) The Reserve Bank on Tuesday said it has imposed a penalty of Rs 2.44 lakh on Spice Money Limited for contravention of certain norms.

The RBI also imposed a fine of Rs 5 lakh on The Kuppam Co-operative Town Bank, Kuppam, Chittoor district (Andhra Pradesh) for deficiencies in regulatory compliance.

Also Read | Joe Cury; Against ALL Odds, From Homeless & Suicidal to $18MM in Sales.

Regarding Spice Money, RBI said it was observed that the entity was non-compliant with directions issued by the central bank on maintenance of escrow account balance.

In another statement, it said the inspection report of the cooperative bank based on its financial position as on March 31, 2019 revealed "contravention of/non-compliance" with the directions on "Income Recognition, Asset Classification, Provisioning and other related Matters - UCB's and also on Board of Directors - UCBs".

Also Read | AI and Machine Learning Can Prevent Fraud Attacks, Says Cupid Chan.

RBI further said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)