RBI slaps Rs 1 crore penalty on LVB, Rs 75 lakh fine on Syndicate Bank for violating norms

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Published: October 15, 2019 2:30:24 AM

After considering reply of Lakshmi Vilas Bank to the notice and examination of additional submission, the RBI concluded that the aforesaid non-compliance warranted imposition of monetary penalty.

Reserve Bank of India, RBI, Lakshmi Vilas Bank, LVB, Income Recognition and Asset Classification, IRAC norms, Syndicate Bank, Lakshmi Vilas Bank Penalty on LVB was imposed because of non-adherence to guidelines on certain IRAC norms

The Reserve Bank of India (RBI) has imposed a penalty of `1 crore on Lakshmi Vilas Bank (LVB) for non-adherence to certain provisions of Income Recognition and Asset Classification (IRAC) norms.

In a disclosure to stock exchanges, LVB said the fine was imposed for non-adherence to guidelines on IRAC norms and divergence in respect of two non-performing assets accounts aggregating to `169.50 crore for the year ended March 2017.

In a note, the RBI said, the statutory inspection of the bank with reference to LVB financial position as on March 2017 revealed non-compliance on IRAC norms. Based on the inspection report, a notice was issued to LVB, advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

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After considering reply of Lakshmi Vilas Bank to the notice and examination of additional submission, the RBI concluded that the aforesaid non-compliance warranted imposition of monetary penalty.

In a similarly worded release, the central bank said a monetary penalty of `75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by the RBI on frauds classification and reporting; innovative housing loan products wherein upfront disbursal of loans was done.

(With inputs from PTI)

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