The Reserve Bank of India (RBI) has imposed Rs 1 crore monetary penalty on Lakshmi Vilas Bank and Rs 75 lakh on the Syndicate Bank for non-compliance with certain provisions of directions issued by a central bank.
The Apex bank said in a press released that, “The Reserve Bank of India (RBI) has, by an order dated October 14, 2019, imposed monetary penalty of Rs 1 crore on Lakshmi Vilas Bank Ltd for non-compliance with certain provisions of directions issued by RBI on ‘Income Recognition and Asset Classification (IRAC) norms,”
“A monetary penalty of Rs 75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by RBI on frauds classification and reporting; innovative housing loan products wherein upfront disbursal of loans is done”, the RBI statement added.
RBI said for the banks, “This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.”
