Case Brief
By order dated May 27, 2020, RBI imposed a monetary penalty of ₹1.20 crore on Karnataka Bank Ltd. The penalty was for non-compliance with RBI directions relating to prudential norms on income recognition, asset classification and provisioning, including directions on divergence in NPA accounts. RBI said the action arose from deficiencies in regulatory compliance identified during statutory inspection and related risk assessment reports for the bank's financial position as on March 31, 2017 and March 31, 2018. After issuing a show-cause notice and considering the bank's reply, oral submissions, and additional submissions, RBI concluded that the violations warranted a penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.20 Cr
- Entity Type
- Bank
- Action Type