MUMBAI: The Reserve Bank today said it has imposed a penalty of Rs 5 crore on South Indian Bank for non-compliance to its asset classification and Know Your Customer (KYC) norms, among others.
The penalty has been imposed on the bank for non-compliance with the directions "on Income Recognition and Asset Classification (IRAC) norms, KYC norms and treasury function and for deficiencies in its compliance function and compliance culture", the RBI said in a statement.
The action against the bank is based on 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, it said.
Shares of the private sector lender closed at Rs 25.60 a share on BSE, down 2.66 per cent.