RBI Slaps Rs59.10 Lakh Penalty on Karnataka Bank for Opening Deposit Accounts of Illegal Entities
Moneylife Digital Team 20 May 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs59.10 lakh on Karnataka Bank Ltd for violating directions on interest rate on deposits and prudential norms on income recognition, asset classification and provisioning pertaining to advances.
 
After a statutory inspection for superivsory evaluation (ISE 2022), RBI found that Karnataka Bank opened savings deposit accounts in the name of certain ineligible entities and failed to review or renew certain loan accounts within the prescribed period and yet did not classify these accounts as non-performing assets (NPAs).
 
After considering the Bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says, the charges against Karnataka Bank  were sustained, warranting imposition of monetary penalty.
 
However, the banking regulator clarified that its action against Karnataka Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transactions or agreement entered into by the Bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
Comments
Reliance Commercial Finance: NFRA Slaps Rs2.50 Crore Penalty on Shridhar & Associates and CA Ajay Vastani
Moneylife Digital Team 20 May 2024
Holding an audit firm and a chartered accountant (CA) guilty of professional misconduct, the national financial reporting authority (NFRA) imposed a penalty of Rs2.50 crore on them for showing negligence in the audit of Reliance...
Moneylife Impact: Maharashtra’s MahaRERA is the First to Regulate Retirement Homes
Moneylife Digital Team 17 May 2024
In a landmark move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has become India's first and only housing regulatory body to issue detailed regulations for retirement housing projects after model guidelines were issued...
RBI Slaps Rs7 Lakh Penalty on 2 Gujarat-based Cooperative Banks
Moneylife Digital Team 17 May 2024
The Reserve Bank of India (RBI) has imposed a total penalty of Rs7 lakh on Gujarat-based Sutex Cooperative Bank Ltd and Bapunagar Mahila Cooperative Bank Ltd for failing to follow directions issued by the banking regulator on cyber...
Pre-IPO Market in a Tizzy as SEBI Flags 200-Investor Cap: Report
Moneylife Digital Team 17 May 2024
The booming market for pre-IPO placements, particularly in small and micro-cap companies, has been jolted by market regulator Securities and Exchange Board of India (SEBI), making merchant bankers and high net-worth individual (HNI)...
Array
Free Helpline
Legal Credit
Feedback