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RBI imposes Rs 30 lakh penalty on Karur Vysya Bank for rule violations

The RBI imposed Rs 30 lakhs penalty on Karur Vysya Bank.

March 24, 2023 / 06:02 PM IST
An inspection of the RBI revealed that the bank had failed to adhere to RBI directions regarding Fraud Classification and Reporting.

An inspection of the RBI revealed that the bank had failed to adhere to RBI directions regarding Fraud Classification and Reporting.

The Reserve Bank of India (RBI) on March 24 said it imposed a penalty of Rs 30 lakh on Karur Vysya Bank for violating rules.

A Select Scope Inspection (SSI) of the bank conducted by RBI revealed that the bank failed to report a few accounts as frauds to RBI within a week of the respective Joint Lenders’ Forum (JLF) decision to do so.

Subsequently, a notice was issued to the bank asking it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions issued by RBI.

After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, the RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank, a press release said.

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