Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 crore on The Lakshmi Vilas Bank Ltd. by order dated October 14, 2019. RBI said the bank had not complied with certain directions on Income Recognition and Asset Classification (IRAC) norms, as revealed by a statutory inspection with reference to its financial position as on March 31, 2017. After a show-cause notice, the bank’s reply, and additional submissions, RBI concluded that the non-compliance warranted penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty