RBI imposes Rs 1 cr fine on Lakshmi Vilas Bank, Rs 75 lakh on Syndicate Bank for violating norms

The RBI action is based on the deficiencies in regulatory compliance

Press Trust of India October 15, 2019 07:21:27 IST
RBI imposes Rs 1 cr fine on Lakshmi Vilas Bank, Rs 75 lakh on Syndicate Bank for violating norms
  • A monetary penalty of Rs 75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by RBI on frauds classification and reporting

  • RBI imposed monetary penalty of Rs 1 crore on Lakshmi Vilas Bank Ltd for non-compliance with certain provisions of directions

  • The RBI action is based on the deficiencies in regulatory compliance

Mumbai: The Reserve Bank has imposed a monetary penalty of Rs 1 crore on Lakshmi Vilas Bank and Rs 75 lakh on Syndicate Bank for violating asset classification and fraud detection norms.

"The Reserve Bank of India (RBI) has, by an order dated 14 October, 2019, imposed monetary penalty of Rs 1 crore on Lakshmi Vilas Bank Ltd for non-compliance with certain provisions of directions issued by RBI on 'Income Recognition and Asset Classification (IRAC) norms," RBI said in a release on Monday.

In a similarly worded release, it said a monetary penalty of Rs 75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by RBI on frauds classification and reporting; innovative housing loan products wherein upfront disbursal of loans is done.

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, RBI said for the banks.

Updated Date:

also read

Retail inflation rises to 5.59% in December due to an uptick in food prices, shows government data
Business

Retail inflation rises to 5.59% in December due to an uptick in food prices, shows government data

According to the RBI, it is expected that headline inflation will peak in the fourth quarter of the current fiscal and soften thereafter

RBI proposes new norms for classification, valuation of banks' investment portfolio
India

RBI proposes new norms for classification, valuation of banks' investment portfolio

The new norms propose to bridge the gap between the existing guidelines and global standards and practices with regards to classification, valuation and operations of the investment portfolio of commercial banks

India's overall economic activity, driven by consumer confidence and bank credit, remains strong: RBI article
Business

India's overall economic activity, driven by consumer confidence and bank credit, remains strong: RBI article

Amidst upbeat consumer and business confidence and an uptick in bank credit, aggregate demand conditions stay resilient while on the supply front, rabi sowing has exceeded last year’s level and the normal acreage, it noted