Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹30 lakh on Karur Vysya Bank Ltd. on March 21, 2023. The penalty was for non-compliance with RBI’s Frauds – Classification and Reporting by Commercial Banks and Select FIs Directions, 2016, after a select scope inspection found that the bank failed to report some accounts as frauds to RBI within one week of the relevant JLF decisions. RBI said the penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, based on deficiencies in regulatory compliance.
Action Snapshot
- Primary Impact
- Fine: Rs 30.0 L
- Entity Type
- Bank
- Action Type
- Monetary penalty