Mumbai, Oct 14 (IANS) The Reserve Bank of India (RBI) on Monday imposed a penalty of Rs 1 crore on the Lakshmi Vilas Bank Ltd, owing to deficiencies in its regulatory compliance.

The central bank said its statutory inspection of the bank with reference to its financial position as on March 31, 2017, revealed, inter alia, non-compliance with directions issued by RBI on"Income Recognition and Asset Classification (IRAC) norms".

"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 bank with its customers," the RBI said.

The action came after a week after the central bank rejected the merger of India Bulls Housing Finance Ltd and the bank.

--IANS ravi/vd