Case Brief
RBI, by order dated May 14, 2024, imposed a monetary penalty of Rs 59,10,000 on Karnataka Bank Ltd. for non-compliance with RBI directions on interest rate on deposits and prudential norms on income recognition, asset classification and provisioning pertaining to advances. The bank was found to have opened savings deposit accounts in the name of certain ineligible entities and to have failed to review or renew certain loan accounts within the prescribed period, while also not classifying those accounts as NPAs. The action was taken under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, following supervisory inspection findings and consideration of the bank’s submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 59.1 L
- Entity Type
- Bank
- Location
- Karnataka