Informist, Friday, Mar 24, 2023
MUMBAI – The Reserve Bank of India has imposed a monetary penalty of 3 mln rupees on Karur Vysya Bank Ltd for non-compliance with certain provisions of RBI directions of 2016, which deals with classification of frauds and reporting by commercial banks and select financial institutions, it said in a press release today.
The central bank had conducted a select scope inspection of the bank from Feb 21, 2022 to Mar 4, 2022. The select scope inspection report and all related correspondence revealed that the bank failed to report a few accounts as fraudulent ones to RBI within a week of the respective joint lenders' forum decisions to do so.
A show-cause notice was sent to the bank and after considering their reply, the charge of non-compliance was substantiated and monetary penalty was imposed. The fine was imposed based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the central bank said.
Today, shares of the bank closed 0.1% higher at 97.40 rupees on the National Stock Exchange. End
Reported by Nishat Anjum
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Informist, Friday, Mar 24, 2023
MUMBAI – The Reserve Bank of India has imposed a monetary penalty of 3 mln rupees on Karur Vysya Bank Ltd for non-compliance with certain provisions of RBI directions of 2016, which deals with classification of frauds and reporting by commercial banks and select financial institutions, it said in a press release today.
The central bank had conducted a select scope inspection of the bank from Feb 21, 2022 to Mar 4, 2022. The select scope inspection report and all related correspondence revealed that the bank failed to report a few accounts as fraudulent ones to RBI within a week of the respective joint lenders' forum decisions to do so.
A show-cause notice was sent to the bank and after considering their reply, the charge of non-compliance was substantiated and monetary penalty was imposed. The fine was imposed based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the central bank said.
Today, shares of the bank closed 0.1% higher at 97.40 rupees on the National Stock Exchange. End
Reported by Nishat Anjum
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
