Case Brief
By an order dated January 08, 2024, RBI imposed a monetary penalty of Rs 120.47 lakh on Dhanlaxmi Bank Ltd. for non-compliance with RBI directions on loans and advances, KYC, and interest rate on deposits. The inspection for supervisory evaluation (ISE 2022) found that the bank sanctioned loans against gold ornaments/jewellery for non-agricultural purposes beyond the permitted 75% value, applied the wrong interest rate to certain senior citizen term deposits, failed to obtain PAN or Form 60 for some term deposit accounts above Rs 50,000, and allotted multiple customer identification codes to some customers instead of a unique UCIC. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 1.20 Cr
- Entity Type
- Bank
- Action Type