MUMBAI: The Reserve Bank of India on Monday imposed penalty of Rs 3 crore on private lender Axis Bank for non-compliance of income recognition and asset classification (IRAC) norms. The regulator said it found discrepancies in the lenders assessment of non-performing assets which warranted a monetary penalty.“The statutory inspection of the bank with reference to its financial position as on March 31, 2016 revealed violations of various regulations issued by RBI in the assessment of Non-Performing Assets,” the RBI said. “After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions and guidelines were substantiated and warranted imposition of monetary penalty.”Axis Bank which is currently struggling under the burden of its legacy infrastructure loans reported divergence of Rs 5633 crore for FY17 while this number was at Rs 9480 crore for FY16.The regulator in its statement also said that its action was based on deficiencies in regulatory compliance. It also said that the action by the regulator does not cast any view on the validity of any transaction or agreement entered into by the bank with its customers.Along with Axis Bank, the Reserve Bank also slapped a monetary penalty of Rs 2 crore on state-run lender Indian Overseas Bank for non-compliance of Know Your Customer norms after a fraud was detected in one of its branches.