Case Brief
RBI imposed a monetary penalty on Karur Vysya Bank Limited by order dated February 04, 2025. The penalty was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 after RBI found, based on supervisory inspection findings, that the bank had not complied with its directions on ‘Loan System for Delivery of Bank Credit’. Specifically, the bank failed to ensure that the outstanding loan component was at least the prescribed percentage of the sanctioned fund-based working capital limit for certain borrowers.
Action Snapshot
- Primary Impact
- Fine: Rs 8.30 L
- Entity Type
- Bank
- Action Type
- Monetary penalty